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

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

Risk & Volatility

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.51	$1.11 billion	$1.93	10.92
Getinge	$3.57 billion	1.94	$230.87 million	$1.05	24.22

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.

Dividends

Fresenius Medical Care AG & Co. KGaA pays an annual dividend of $0.61 per share and has a dividend yield of 2.9%. Getinge pays an annual dividend of $0.29 per share and has a dividend yield of 1.1%. Fresenius Medical Care AG & Co. KGaA pays out 31.6% of its earnings in the form of a dividend. Getinge pays out 27.6% 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.

Institutional and Insider Ownership

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius Medical Care AG & Co. KGaA	5	8	0	0	1.62
Getinge	0	4	0	0	2.00

Fresenius Medical Care AG & Co. KGaA presently has a consensus price target of $23.42, suggesting a potential upside of 11.15%. Given Fresenius Medical Care AG & Co. KGaA’s higher possible upside, analysts clearly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Getinge.

Profitability

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

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

Summary

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

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.

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.