Comparing Fresenius Medical Care Corporation (FMS) & Streamline Health Solutions (STRM)

Streamline Health Solutions (NASDAQ: STRM) and Fresenius Medical Care Corporation (NYSE:FMS) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

37.9% of Streamline Health Solutions shares are owned by institutional investors. Comparatively, 2.6% of Fresenius Medical Care Corporation shares are owned by institutional investors. 26.1% of Streamline Health Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Fresenius Medical Care Corporation pays an annual dividend of $0.37 per share and has a dividend yield of 0.8%. Streamline Health Solutions does not pay a dividend. Fresenius Medical Care Corporation pays out 16.6% of its earnings in the form of a dividend.

Profitability

This table compares Streamline Health Solutions and Fresenius Medical Care Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Streamline Health Solutions -24.50% -56.04% -15.49%
Fresenius Medical Care Corporation 7.04% 11.51% 5.00%

Valuation and Earnings

This table compares Streamline Health Solutions and Fresenius Medical Care Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Streamline Health Solutions $27.06 million 1.09 -$5.16 million ($0.31) -4.74
Fresenius Medical Care Corporation $17.91 billion 1.66 $1.24 billion $2.23 21.71

Fresenius Medical Care Corporation has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Fresenius Medical Care Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Streamline Health Solutions and Fresenius Medical Care Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Streamline Health Solutions 0 0 0 0 N/A
Fresenius Medical Care Corporation 0 2 4 0 2.67

Fresenius Medical Care Corporation has a consensus price target of $44.00, indicating a potential downside of 9.13%. Given Fresenius Medical Care Corporation’s higher possible upside, analysts clearly believe Fresenius Medical Care Corporation is more favorable than Streamline Health Solutions.

Volatility & Risk

Streamline Health Solutions has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Fresenius Medical Care Corporation has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Summary

Fresenius Medical Care Corporation beats Streamline Health Solutions on 11 of the 14 factors compared between the two stocks.

About Streamline Health Solutions

Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.

About Fresenius Medical Care Corporation

Fresenius Medical Care AG & Co. KGaA is a kidney dialysis company. The Company provides dialysis care and related services to persons suffering from end-stage renal disease (ESRD), as well as other healthcare services. The Company’s segments include North America Segment, the Europe, Middle East and Africa (EMEA) Segment, the Asia-Pacific Segment and the Latin America Segment. The Company develops and manufactures a range of dialysis machines, systems and disposable products. As of December 31, 2016, the Company sold its products to customers in more than 120 countries and also used in its internal healthcare service operations. The Company’s Care Coordination services include coordinated delivery of pharmacy services, vascular, cardiovascular and endovascular specialty services, non-dialysis laboratory testing services, physician services, hospitalist and intensivist services, health plan services, ambulatory surgery center services and urgent care services.

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