Davita (NYSE: DVA) and Concord Medical Services (NYSE:CCM) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
Volatility & Risk
Davita has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Concord Medical Services has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Davita and Concord Medical Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Concord Medical Services||0||0||0||0||N/A|
Davita currently has a consensus target price of $79.00, suggesting a potential upside of 7.26%. Given Davita’s higher possible upside, equities research analysts plainly believe Davita is more favorable than Concord Medical Services.
Valuation & Earnings
This table compares Davita and Concord Medical Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Davita||$10.88 billion||1.24||$879.87 million||$4.85||15.19|
|Concord Medical Services||$65.54 million||1.71||-$37.71 million||($1.14)||-2.26|
Davita has higher revenue and earnings than Concord Medical Services. Concord Medical Services is trading at a lower price-to-earnings ratio than Davita, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.5% of Davita shares are held by institutional investors. Comparatively, 12.1% of Concord Medical Services shares are held by institutional investors. 2.1% of Davita shares are held by company insiders. Comparatively, 46.5% of Concord Medical Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Davita and Concord Medical Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Concord Medical Services||N/A||N/A||N/A|
Davita beats Concord Medical Services on 12 of the 14 factors compared between the two stocks.
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
About Concord Medical Services
Concord Medical Services Holdings Limited is engaged in the leasing of radiotherapy and diagnostic imaging equipment, the provision of management services to hospitals. The Company is also engaged in hospital operations. The Company’s segments are network and premium cancer hospital. The Company operates a network of radiotherapy and diagnostic imaging centers in China. Its network consists of approximately 130 cooperative centers based in over 70 hospitals, spanning approximately 60 cities across 25 provinces and administrative regions in China. Its network includes approximately 60 radiotherapy centers and over 60 diagnostic imaging centers and approximately seven centers. The Company’s cooperative centers are equipped with a primary unit of medical equipment, such as a linear accelerator, head gamma knife system, body gamma knife system, positron emission tomography-computed tomography (PET-CT) scanner or magnetic resonance imaging (MRI) scanner.
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