Comparing Glaukos (NYSE:GKOS) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS)

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

Risk and Volatility

Glaukos has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Fresenius Medical Care AG & Co. KGaA has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Glaukos and Fresenius Medical Care AG & Co. KGaA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glaukos	$507.44 million	15.41	-$187.69 million	($3.28)	-40.60
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.55	$1.11 billion	$1.90	11.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Glaukos	-34.34%	-6.92%	-5.25%
Fresenius Medical Care AG & Co. KGaA	4.88%	8.90%	4.05%

Analyst Recommendations

This is a summary of current ratings and target prices for Glaukos and Fresenius Medical Care AG & Co. KGaA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glaukos	1	1	11	1	2.86
Fresenius Medical Care AG & Co. KGaA	4	6	0	0	1.60

Glaukos currently has a consensus target price of $144.42, suggesting a potential upside of 8.45%. Fresenius Medical Care AG & Co. KGaA has a consensus target price of $28.00, suggesting a potential upside of 27.15%. Given Fresenius Medical Care AG & Co. KGaA’s higher possible upside, analysts clearly believe Fresenius Medical Care AG & Co. KGaA is more favorable than Glaukos.

Insider and Institutional Ownership

99.0% of Glaukos shares are held by institutional investors. Comparatively, 8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. 5.8% of Glaukos shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Fresenius Medical Care AG & Co. KGaA beats Glaukos on 8 of the 15 factors compared between the two stocks.

About Glaukos

Glaukos Corporation, an ophthalmic pharmaceutical and medical technology company, focuses on the development of novel therapies for the treatment of glaucoma, corneal disorders, and retinal diseases. It offers iStent and iStent inject W micro-bypass stents that enhance aqueous humor outflow inserted in cataract surgery to treat mild-to-moderate open-angle glaucoma. The company's product pipeline includes iStent Infinite indicated for use in the treatment of patients with glaucoma uncontrolled by prior medical and surgical therapy; and iDose TR, an intracameral procedural pharmaceutical therapy indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension. The company markets its products through direct sales organization, as well as through distributors in the United States and internationally. Glaukos Corporation was incorporated in 1998 and is headquartered in Aliso Viejo, California.

About Fresenius Medical Care AG & Co. KGaA

Fresenius Medical Care AG provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally. The company 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. It also develops, manufactures, and distributes various health care products, including polysulfone dialyzers, hemodialysis machines, peritoneal dialysis cyclers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and acute cardiopulmonary and apheresis products. In addition, the company 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, vascular care ambulatory surgery center, and physician nephrology and cardiology services. The company sells its products to dialysis clinics, hospitals, and specialized treatment clinics directly, as well as through local sales forces, independent distributors, dealers, and sales agents. Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.