DaVita (NYSE:DVA – Get Free Report) and Quipt Home Medical (NASDAQ:QIPT – Get Free Report) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Risk & Volatility
DaVita has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Quipt Home Medical has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
Insider & Institutional Ownership
90.1% of DaVita shares are owned by institutional investors. Comparatively, 42.9% of Quipt Home Medical shares are owned by institutional investors. 2.0% of DaVita shares are owned by company insiders. Comparatively, 13.4% of Quipt Home Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DaVita | $12.14 billion | 1.16 | $691.53 million | $9.27 | 18.55 |
| Quipt Home Medical | $245.91 million | 0.51 | -$6.76 million | ($0.15) | -19.33 |
DaVita has higher revenue and earnings than Quipt Home Medical. Quipt Home Medical is trading at a lower price-to-earnings ratio than DaVita, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for DaVita and Quipt Home Medical, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DaVita | 1 | 3 | 1 | 0 | 2.00 |
| Quipt Home Medical | 1 | 0 | 3 | 2 | 3.00 |
DaVita presently has a consensus target price of $161.80, suggesting a potential downside of 5.91%. Quipt Home Medical has a consensus target price of $6.25, suggesting a potential upside of 115.52%. Given Quipt Home Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Quipt Home Medical is more favorable than DaVita.
Profitability
This table compares DaVita and Quipt Home Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DaVita | 6.53% | 88.18% | 4.88% |
| Quipt Home Medical | -2.66% | -6.18% | -2.73% |
Summary
DaVita beats Quipt Home Medical on 10 of the 15 factors compared between the two stocks.
About DaVita
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the provision of acute inpatient dialysis services and related laboratory services; and transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.
About Quipt Home Medical
Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.
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