Comprehensive Stock Comparison
Compare Tenet Healthcare Corporation (THC) vs Fresenius Medical Care AG & Co. KGaA (FMS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | THC | 3.1% revenue growth vs FMS's 1.5% |
| Value | THC | PEG 0.43 vs 1.94 |
| Quality / Margins | THC | 6.6% net margin vs FMS's 5.0% |
| Stability / Safety | FMS | Beta 0.40 vs THC's 0.93, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | THC | +89.1% vs FMS's +0.2% |
| Efficiency (ROA) | THC | 4.7% ROA vs FMS's 3.2%, ROIC 13.5% vs 5.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Tenet Healthcare is a diversified healthcare services company that operates hospitals, ambulatory surgery centers, and urgent care facilities. It generates revenue primarily from hospital operations (acute care services) and ambulatory care centers, with additional income from its Conifer segment providing revenue cycle management services to other healthcare providers. The company's scale and integrated network of facilities across multiple states create operational efficiencies and referral pathways that serve as its competitive advantage.
Fresenius Medical Care is a global leader in dialysis care and products for patients with chronic kidney failure. It generates revenue through two main segments: dialysis services (about 75% of revenue) from its network of outpatient clinics and hospital contracts, and dialysis products (about 25%) including machines, dialyzers, and related supplies. The company's key advantage is its vertically integrated model—combining clinics, products, and services—which creates patient stickiness and economies of scale in the capital-intensive dialysis industry.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
THC leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). FMS leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
THC and FMS operate at a comparable scale, with $21.3B and $19.6B in trailing revenue. Profitability is closely matched — net margins range from 6.6% (THC) to 5.0% (FMS). On growth, THC holds the edge at +9.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| RevenueTrailing 12 months | $21.3B | $19.6B |
| EBITDAEarnings before interest/tax | $4.4B | $3.3B |
| Net IncomeAfter-tax profit | $1.4B | $978M |
| Free Cash FlowCash after capex | $2.5B | $1.2B |
| Gross MarginGross profit ÷ Revenue | +55.9% | +25.6% |
| Operating MarginEBIT ÷ Revenue | +16.5% | +9.3% |
| Net MarginNet income ÷ Revenue | +6.6% | +5.0% |
| FCF MarginFCF ÷ Revenue | +11.9% | +6.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.0% | -0.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +27.1% | +8.5% |
Valuation Metrics
At 11.8x trailing earnings, FMS trades at a 23% valuation discount to THC's 15.5x P/E. Adjusting for growth (PEG ratio), THC offers better value at 0.47x vs FMS's 2.32x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| Market CapShares × price | $21.0B | $13.6B |
| Enterprise ValueMkt cap + debt − cash | $31.3B | $24.4B |
| Trailing P/EPrice ÷ TTM EPS | 15.45x | 11.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.12x | 9.89x |
| PEG RatioP/E ÷ EPS growth rate | 0.47x | 2.32x |
| EV / EBITDAEnterprise value multiple | 7.17x | 6.33x |
| Price / SalesMarket cap ÷ Revenue | 0.99x | 0.59x |
| Price / BookPrice ÷ Book value/share | 2.42x | 0.81x |
| Price / FCFMarket cap ÷ FCF | 8.32x | — |
Profitability & Efficiency
THC delivers a 15.7% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $7 for FMS. FMS carries lower financial leverage with a 0.76x debt-to-equity ratio, signaling a more conservative balance sheet compared to THC's 1.47x. On the Piotroski fundamental quality scale (0–9), THC scores 7/9 vs FMS's 5/9, reflecting strong financial health.
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| ROE (TTM)Return on equity | +15.7% | +6.8% |
| ROA (TTM)Return on assets | +4.7% | +3.2% |
| ROICReturn on invested capital | +13.5% | +5.6% |
| ROCEReturn on capital employed | +14.1% | +6.9% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 1.47x | 0.76x |
| Net DebtTotal debt minus cash | $10.3B | $9.2B |
| Cash & Equiv.Liquid assets | $2.9B | $1.6B |
| Total DebtShort + long-term debt | $13.2B | $10.8B |
| Interest CoverageEBIT ÷ Interest expense | 5.85x | 6.84x |
Total Returns (with DRIP)
A $10,000 investment in THC five years ago would be worth $45,270 today (with dividends reinvested), compared to $7,718 for FMS. Over the past 12 months, THC leads with a +89.1% total return vs FMS's +0.2%. The 3-year compound annual growth rate (CAGR) favors THC at 59.9% vs FMS's 9.1% — a key indicator of consistent wealth creation.
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| YTD ReturnYear-to-date | +20.0% | -0.2% |
| 1-Year ReturnPast 12 months | +89.1% | +0.2% |
| 3-Year ReturnCumulative with dividends | +309.0% | +29.7% |
| 5-Year ReturnCumulative with dividends | +352.7% | -22.8% |
| 10-Year ReturnCumulative with dividends | +864.5% | -28.5% |
| CAGR (3Y)Annualised 3-year return | +59.9% | +9.1% |
Risk & Volatility
FMS is the less volatile stock with a 0.40 beta — it tends to amplify market swings less than THC's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. THC currently trades 99.5% from its 52-week high vs FMS's 77.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.93x | 0.40x |
| 52-Week HighHighest price in past year | $240.57 | $30.46 |
| 52-Week LowLowest price in past year | $109.82 | $20.95 |
| % of 52W HighCurrent price vs 52-week peak | +99.5% | +77.0% |
| RSI (14)Momentum oscillator 0–100 | 74.5 | 49.0 |
| Avg Volume (50D)Average daily shares traded | 826K | 518K |
Analyst Outlook
Wall Street rates THC as "Buy" and FMS as "Hold". Consensus price targets imply 19.4% upside for FMS (target: $28) vs 7.5% for THC (target: $257).
| Metric | THCTenet Healthcare … | FMSFresenius Medical… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $257.45 | $28.00 |
| # AnalystsCovering analysts | 32 | 18 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +6.8% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Tenet Healthcare Co… (THC) | 100 | 662.08 | +562.1% |
| Fresenius Medical C… (FMS) | 100 | 56.36 | -43.6% |
Tenet Healthcare Co… (THC) returned +353% over 5 years vs Fresenius Medical C… (FMS)'s -23%. A $10,000 investment in THC 5 years ago would be worth $45,270 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tenet Healthcare Co… (THC) | $19.6B | $21.3B | +8.6% |
| Fresenius Medical C… (FMS) | $17.0B | $19.6B | +15.3% |
Tenet Healthcare Corporation's revenue grew from $19.6B (2016) to $21.3B (2025) — a 0.9% CAGR. Fresenius Medical Care AG & Co. KGaA's revenue grew from $17.0B (2016) to $19.6B (2025) — a 1.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tenet Healthcare Co… (THC) | -1.0% | 6.6% | +774.8% |
| Fresenius Medical C… (FMS) | 6.9% | 5.0% | -28.2% |
Tenet Healthcare Corporation's net margin went from -1% (2016) to 7% (2025). Fresenius Medical Care AG & Co. KGaA's net margin went from 7% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Tenet Healthcare Co… (THC) | 16 | 12.8 | -20.0% |
| Fresenius Medical C… (FMS) | 25.3 | 14.2 | -43.9% |
Tenet Healthcare Corporation has traded in a 4x–16x P/E range over 7 years; current trailing P/E is ~15x. Fresenius Medical Care AG & Co. KGaA has traded in a 10x–39x P/E range over 9 years; current trailing P/E is ~12x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tenet Healthcare Co… (THC) | -1.93 | 15.49 | +902.6% |
| Fresenius Medical C… (FMS) | 1.87 | 1.68 | -10.2% |
Tenet Healthcare Corporation's EPS grew from $-1.93 (2016) to $15.49 (2025). Fresenius Medical Care AG & Co. KGaA's EPS grew from $1.87 (2016) to $1.68 (2025) — a -1% CAGR.
Chart 6Free Cash Flow — 5 Years
Tenet Healthcare Corporation generated $3B FCF in 2025 (+178% vs 2021). Fresenius Medical Care AG & Co. KGaA generated $0M FCF in 2025 (-100% vs 2021).
THC vs FMS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is THC or FMS a better buy right now?
Fresenius Medical Care AG & Co. KGaA (FMS) offers the better valuation at 11.8x trailing P/E (9.9x forward), making it the more compelling value choice. Analysts rate Tenet Healthcare Corporation (THC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — THC or FMS?
On trailing P/E, Fresenius Medical Care AG & Co. KGaA (FMS) is the cheapest at 11.8x versus Tenet Healthcare Corporation at 15.5x. On forward P/E, Fresenius Medical Care AG & Co. KGaA is actually cheaper at 9.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tenet Healthcare Corporation wins at 0.43x versus Fresenius Medical Care AG & Co. KGaA's 1.94x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — THC or FMS?
Over the past 5 years, Tenet Healthcare Corporation (THC) delivered a total return of +352.7%, compared to -22.8% for Fresenius Medical Care AG & Co. KGaA (FMS). A $10,000 investment in THC five years ago would be worth approximately $45K today (assuming dividends reinvested). Over 10 years, the gap is even starker: THC returned +864.5% versus FMS's -28.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — THC or FMS?
By beta (market sensitivity over 5 years), Fresenius Medical Care AG & Co. KGaA (FMS) is the lower-risk stock at 0.40β versus Tenet Healthcare Corporation's 0.93β — meaning THC is approximately 131% more volatile than FMS relative to the S&P 500. On balance sheet safety, Fresenius Medical Care AG & Co. KGaA (FMS) carries a lower debt/equity ratio of 76% versus 147% for Tenet Healthcare Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — THC or FMS?
Tenet Healthcare Corporation (THC) is the more profitable company, earning 6.6% net margin versus 5.0% for Fresenius Medical Care AG & Co. KGaA — meaning it keeps 6.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: THC leads at 16.5% versus 9.3% for FMS. At the gross margin level — before operating expenses — THC leads at 41.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is THC or FMS more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Tenet Healthcare Corporation (THC) is the more undervalued stock at a PEG of 0.43x versus Fresenius Medical Care AG & Co. KGaA's 1.94x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Fresenius Medical Care AG & Co. KGaA (FMS) trades at 9.9x forward P/E versus 14.1x for Tenet Healthcare Corporation — 4.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FMS: 19.4% to $28.00.
07Which pays a better dividend — THC or FMS?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is THC or FMS better for a retirement portfolio?
For long-horizon retirement investors, Tenet Healthcare Corporation (THC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.93), +864.5% 10Y return). Both have compounded well over 10 years (THC: +864.5%, FMS: -28.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between THC and FMS?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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