Critical Comparison: Getinge (OTCMKTS:GNGBY) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS)

Getinge (OTCMKTS:GNGBY) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Getinge and Fresenius Medical Care AG & Co. KGaA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getinge	$3.57 billion	2.00	$230.87 million	$1.05	24.96
Fresenius Medical Care AG & Co. KGaA	$19.43 billion	0.61	$1.11 billion	$1.93	11.48

Fresenius Medical Care AG & Co. KGaA has higher revenue and earnings than Getinge. Fresenius Medical Care AG & Co. KGaA is trading at a lower price-to-earnings ratio than Getinge, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Getinge pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Fresenius Medical Care AG & Co. KGaA pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. Getinge pays out 26.7% of its earnings in the form of a dividend. Fresenius Medical Care AG & Co. KGaA pays out 31.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Getinge and Fresenius Medical Care AG & Co. KGaA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getinge	7.81%	11.12%	5.88%
Fresenius Medical Care AG & Co. KGaA	4.83%	9.28%	4.16%

Analyst Recommendations

This is a breakdown of current recommendations for Getinge and Fresenius Medical Care AG & Co. KGaA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getinge	0	4	0	0	2.00
Fresenius Medical Care AG & Co. KGaA	4	7	0	0	1.64

Fresenius Medical Care AG & Co. KGaA has a consensus price target of $23.42, indicating a potential upside of 5.73%. Given Fresenius Medical Care AG & Co. KGaA’s higher probable upside, analysts plainly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Getinge.

Risk and Volatility

Getinge has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Summary

Getinge beats Fresenius Medical Care AG & Co. KGaA on 8 of the 14 factors compared between the two stocks.

About Getinge

Getinge AB (publ) provides products and solutions for operating rooms, intensive-care units, and sterilization departments. The company operates through Acute Care Therapies, Life Science, and Surgical Workflows segments. It offers extracorporeal membrane oxygenation, mechanical ventilation, mechanical circulatory support, advanced patient monitoring, ICU infrastructure equipment, patient flow management, and drainage solutions. The company also provides surgical perfusion, endoscopic vessel harvesting, intra-aortic balloon counterpulsation, and drainage solutions; and operating room infrastructure equipment, anesthesia, advanced patient monitoring, operating room management, and operating room integration solutions. In addition, it offers pre-cleaning, cleaning and disinfection, sterilization, consumables, endoscope reprocessing, and sterile supply management solutions; connected medical devices; bioreactor systems, DPTE systems, Getinge isolators, terminal sterilization products, and sterilizers; and vivarium, biohazardous materials handling solutions, labware cleaning and sterilization, upstream bioprocessing, and bioreactor preparation solutions. It offers its products through a network of sales companies, as well as through agents and distributors in the Americas, Europe, the Middle East, Africa, and the Asia and Pacific. Getinge AB (publ) was founded in 1904 and is headquartered in Gothenburg, Sweden.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company offers dialysis treatment and related laboratory and diagnostic services through a network of outpatient dialysis clinics; materials, training, and patient support services comprising clinical monitoring, follow-up assistance, and arranging for delivery of the supplies to the patient's residence; and dialysis services under contract to hospitals in the United States for the hospitalized end-stage renal disease (ESRD) patients and for patients suffering from acute kidney failure. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company develops, acquires, and in-licenses renal pharmaceuticals; offers renal medications and supplies to patients at homes or to dialysis clinics; and provides vascular, cardiovascular, endovascular specialty, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.