Head to Head Survey: DaVita (NYSE:DVA) vs. Elanco Animal Health (NYSE:ELAN)

DaVita (NYSE:DVA) and Elanco Animal Health (NYSE:ELAN) 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.

Valuation and Earnings

This table compares DaVita and Elanco Animal Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DaVita	$12.97 billion	0.81	$936.34 million	$10.09	13.82
Elanco Animal Health	$4.44 billion	1.50	$338.00 million	$0.74	18.11

DaVita has higher revenue and earnings than Elanco Animal Health. DaVita is trading at a lower price-to-earnings ratio than Elanco Animal Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DaVita and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DaVita	6.63%	176.11%	4.66%
Elanco Animal Health	8.43%	7.54%	3.57%

Analyst Ratings

This is a breakdown of current recommendations for DaVita and Elanco Animal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DaVita	1	4	1	0	2.00
Elanco Animal Health	0	4	3	0	2.43

DaVita currently has a consensus target price of $164.50, indicating a potential upside of 18.01%. Elanco Animal Health has a consensus target price of $15.17, indicating a potential upside of 13.14%. Given DaVita’s higher probable upside, research analysts clearly believe DaVita is more favorable than Elanco Animal Health.

Risk and Volatility

DaVita has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Institutional & Insider Ownership

90.1% of DaVita shares are held by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are held by institutional investors. 2.0% of DaVita shares are held by company insiders. Comparatively, 0.9% of Elanco Animal Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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 Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.