Head to Head Survey: DaVita (DVA) and Its Competitors

DaVita (NYSE:DVA) is one of 233 publicly-traded companies in the “Healthcare Providers & Services” industry, but how does it weigh in compared to its peers? We will compare DaVita to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares DaVita and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DaVita	$13.64 billion	$746.80 million	15.05
DaVita Competitors	$19.08 billion	$288.48 million	6.91

DaVita’s peers have higher revenue, but lower earnings than DaVita. DaVita is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DaVita and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	0	3	4	0	2.57
DaVita Competitors	1837	7678	13205	813	2.55

DaVita presently has a consensus target price of $233.43, suggesting a potential upside of 26.96%. As a group, “Healthcare Providers & Services” companies have a potential upside of 11.44%. Given DaVita’s stronger consensus rating and higher possible upside, equities analysts plainly believe DaVita is more favorable than its peers.

Institutional & Insider Ownership

90.1% of DaVita shares are held by institutional investors. Comparatively, 56.7% of shares of all “Healthcare Providers & Services” companies are held by institutional investors. 1.9% of DaVita shares are held by company insiders. Comparatively, 15.0% of shares of all “Healthcare Providers & Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares DaVita and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DaVita	6.05%	-217.63%	5.07%
DaVita Competitors	-7.83%	-141.62%	-1.53%

Risk and Volatility

DaVita has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, DaVita’s peers have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Summary

DaVita beats its peers on 8 of the 13 factors compared.

DaVita Company Profile

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.