DaVita HealthCare Partners (NYSE: DVA) and Air Methods Corp (NASDAQ:AIRM) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
This is a breakdown of recent recommendations for DaVita HealthCare Partners and Air Methods Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DaVita HealthCare Partners||2||6||1||0||1.89|
|Air Methods Corp||0||3||1||0||2.25|
DaVita HealthCare Partners currently has a consensus target price of $65.00, indicating a potential upside of 12.61%. Air Methods Corp has a consensus target price of $42.50, indicating a potential downside of 1.05%. Given DaVita HealthCare Partners’ higher probable upside, analysts plainly believe DaVita HealthCare Partners is more favorable than Air Methods Corp.
Valuation and Earnings
This table compares DaVita HealthCare Partners and Air Methods Corp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DaVita HealthCare Partners||$15.01 billion||0.74||$2.45 billion||$6.50||8.88|
|Air Methods Corp||N/A||N/A||N/A||$2.59||16.58|
DaVita HealthCare Partners has higher revenue and earnings than Air Methods Corp. DaVita HealthCare Partners is trading at a lower price-to-earnings ratio than Air Methods Corp, indicating that it is currently the more affordable of the two stocks.
This table compares DaVita HealthCare Partners and Air Methods Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
|Air Methods Corp||6.67%||14.18%||4.43%|
Insider & Institutional Ownership
83.2% of DaVita HealthCare Partners shares are owned by institutional investors. 2.0% of DaVita HealthCare Partners shares are owned by insiders. Comparatively, 9.0% of Air Methods Corp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
DaVita HealthCare Partners has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Air Methods Corp has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
DaVita HealthCare Partners Company Profile
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.
Air Methods Corp Company Profile
Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.
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