Financial Review: Emmaus Life Sciences (NASDAQ:EMMA) versus Fresenius Medical Care AG & Co. (NASDAQ:FMS)

Emmaus Life Sciences (NASDAQ:EMMA) and Fresenius Medical Care AG & Co. (NYSE:FMS) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Dividends

Fresenius Medical Care AG & Co. pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. Emmaus Life Sciences does not pay a dividend. Fresenius Medical Care AG & Co. pays out 19.8% of its earnings in the form of a dividend. Fresenius Medical Care AG & Co. has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Emmaus Life Sciences and Fresenius Medical Care AG & Co.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emmaus Life Sciences $1.32 million 118.66 -$9.59 million ($11.16) -0.30
Fresenius Medical Care AG & Co. $19.44 billion 1.03 $2.34 billion $2.27 14.33

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

Insider and Institutional Ownership

0.1% of Emmaus Life Sciences shares are held by institutional investors. Comparatively, 1.4% of Fresenius Medical Care AG & Co. shares are held by institutional investors. 36.9% of Emmaus Life Sciences shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Emmaus Life Sciences has a beta of 2.86, indicating that its stock price is 186% more volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Emmaus Life Sciences and Fresenius Medical Care AG & Co., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emmaus Life Sciences 0 0 0 0 N/A
Fresenius Medical Care AG & Co. 0 5 4 0 2.44

Fresenius Medical Care AG & Co. has a consensus target price of $56.06, indicating a potential upside of 72.38%. Given Fresenius Medical Care AG & Co.’s higher probable upside, analysts clearly believe Fresenius Medical Care AG & Co. is more favorable than Emmaus Life Sciences.

Profitability

This table compares Emmaus Life Sciences and Fresenius Medical Care AG & Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emmaus Life Sciences -561.61% -467.46% -216.02%
Fresenius Medical Care AG & Co. 7.34% 10.18% 4.50%

Summary

Fresenius Medical Care AG & Co. beats Emmaus Life Sciences on 12 of the 16 factors compared between the two stocks.

About Emmaus Life Sciences

Emmaus Life Sciences, Inc. engages in the discovery, development, and commercialization of treatments and therapies primarily for rare and orphan diseases in the United States and internationally. It provides Endari, which is L-glutamine oral powder to reduce the acute complications of sickle cell disease in adult and pediatric patients five years of age and older; NutreStore L-glutamine powder; and AminoPure, a nutritional supplement. The company also develops therapeutic products based on cell sheet technology for the treatment of corneal diseases. In addition, it focuses on developing pharmaceutical-grade L-glutamine oral powder for diverticulosis. The company was formerly known as Emmaus Holdings, Inc. and changed its name to Emmaus Life Sciences, Inc. in September 2011. Emmaus Life Sciences, Inc. was founded in 2000 and is headquartered in Torrance, California.

About Fresenius Medical Care AG & Co.

Fresenius Medical Care AG & Co. KGaA, a kidney dialysis company, provides dialysis care and related services, and other health care services in Germany, the United States, and internationally. It 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. The company also develops, manufactures, and distributes dialysis products, including hemodialysis machines, peritoneal cyclers, dialyzers, peritoneal solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, and water treatment systems for the treatment of ESRD; and non-dialysis products, such as acute cardiopulmonary and apheresis products. In addition, it 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, hospitalist, emergency, intensivist, medical cost management, ambulatory surgery center, health plan, urgent care, physician nephrology and cardiology, and ambulant treatment services. The company sells its products to clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. As of December 31, 2018, it operated 3,928 outpatient dialysis clinics in approximately 150 countries. Fresenius Medical Care AG & Co. KGaA was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

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