Progyny (NASDAQ:PGNY) and Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) Critical Analysis

Fresenius Medical Care AG & Co. KGaA (NYSE:FMS) and Progyny (NASDAQ:PGNY) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Fresenius Medical Care AG & Co. KGaA and Progyny”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fresenius Medical Care AG & Co. KGaA	$22.20 billion	0.55	$1.11 billion	$1.93	11.96
Progyny	$1.29 billion	1.82	$58.52 million	$0.92	33.20

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

Volatility & Risk

Fresenius Medical Care AG & Co. KGaA has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Progyny has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Fresenius Medical Care AG & Co. KGaA and Progyny, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fresenius Medical Care AG & Co. KGaA	4	7	0	0	1.64
Progyny	0	4	9	0	2.69

Fresenius Medical Care AG & Co. KGaA currently has a consensus target price of $23.42, indicating a potential upside of 1.52%. Progyny has a consensus target price of $34.36, indicating a potential upside of 12.49%. Given Progyny’s stronger consensus rating and higher probable upside, analysts clearly believe Progyny is more favorable than Fresenius Medical Care AG & Co. KGaA.

Institutional & Insider Ownership

8.4% of Fresenius Medical Care AG & Co. KGaA shares are held by institutional investors. Comparatively, 94.9% of Progyny shares are held by institutional investors. 9.9% of Progyny shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fresenius Medical Care AG & Co. KGaA	4.83%	9.28%	4.16%
Progyny	6.00%	15.98%	10.65%

Summary

Progyny beats Fresenius Medical Care AG & Co. KGaA on 11 of the 14 factors compared between the two stocks.

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.

About Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.