Analyzing Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and BrightSpring Health Services (NASDAQ:BTSG)

BrightSpring Health Services (NASDAQ:BTSG) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) are both large-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Risk and Volatility

BrightSpring Health Services has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares BrightSpring Health Services 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
BrightSpring Health Services	2.55%	16.73%	5.24%
Fresenius Medical Care AG & Co. KGaA	4.83%	9.28%	4.16%

Institutional & Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. 2.8% of BrightSpring Health Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightSpring Health Services	$12.91 billion	0.94	$190.67 million	$1.66	37.02
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.59	$1.11 billion	$1.93	12.61

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for BrightSpring Health Services and Fresenius Medical Care AG & Co. KGaA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightSpring Health Services	0	0	18	2	3.10
Fresenius Medical Care AG & Co. KGaA	5	6	0	0	1.55

BrightSpring Health Services presently has a consensus target price of $70.71, indicating a potential upside of 15.06%. Fresenius Medical Care AG & Co. KGaA has a consensus target price of $23.57, indicating a potential downside of 3.14%. Given BrightSpring Health Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe BrightSpring Health Services is more favorable than Fresenius Medical Care AG & Co. KGaA.

Summary

BrightSpring Health Services beats Fresenius Medical Care AG & Co. KGaA on 10 of the 15 factors compared between the two stocks.

About BrightSpring Health Services

BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. The company was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. BrightSpring Health Services, Inc. was founded in 1974 and is headquartered in Louisville, Kentucky.

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.