Fresenius Medical Care AG & Co. KGaA (FMS) vs Tenet Healthcare Corporation (THC)

Fresenius Medical Care AG & Co. KGaA and Tenet Healthcare Corporation are both Medical Care Facilities companies. Tenet Healthcare Corporation is the larger, with a market value of $20.1B against $11.9B — 1.7× the size. Tenet Healthcare Corporation trades at the lower P/E: 9.9× against 11.8×. Tenet Healthcare Corporation grew revenue faster over the last twelve months: 9.40% against 6.74%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 4.78%) and the higher return on invested capital (16.1% vs 5.78%). Across the 22 metrics below, Tenet Healthcare Corporation leads on 13 and Fresenius Medical Care AG & Co. KGaA on 9.

Valuation

Metric FMS THC Medical Care Facilities median
P/E 11.76 9.94 19.16
P/S 0.54 0.96 0.90
P/B 0.77 3.31 2.91
Price to free cash flow 5.93 7.18 12.62
EV/EBITDA 4.95 6.01 10.06
EV/Sales 0.85 1.45 1.35
Earnings yield 8.51% 10.06% 2.30%
Free cash flow yield 16.85% 13.94% 4.14%

Profitability

Metric FMS THC Medical Care Facilities median
Gross margin 26.32% 43.82% 30.78%
Operating margin 9.31% 20.05% 5.74%
Net margin 4.78% 9.90% 2.32%
Free cash flow margin 9.05% 13.35% 5.46%
Return on equity 6.77% 37.25% 8.76%
Return on assets 3.01% 7.55% 2.18%
Return on invested capital 5.78% 16.09% 5.40%

Growth

Metric FMS THC Medical Care Facilities median
Revenue growth (TTM) 6.74% 9.40% 7.12%
EPS growth (last fiscal year) 93.88% (52.63%) —
Revenue growth, 5-year CAGR 1.71% 3.85% 9.58%
Net income growth, 5-year CAGR (3.61%) 28.67% 0.00%

Health

Metric FMS THC Medical Care Facilities median
Debt to equity 0.56 2.02 0.30
Current ratio 1.07 1.41 1.22
Net debt to EBITDA 1.58 2.34 1.32

Dividend

Metric FMS THC Medical Care Facilities median
Dividend yield 2.67% — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric FMS THC Medical Care Facilities median
Market cap 11.90b 20.09b 1.34b

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