Comparing DaVita (NYSE:DVA) and InnovAge (OTCMKTS:INNV)

InnovAge (OTCMKTS:INNV) and DaVita (NYSE:DVA) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for InnovAge and DaVita, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	0	0	0	0	N/A
DaVita	0	2	1	0	2.33

InnovAge currently has a consensus target price of $7.00, indicating a potential upside of 76.32%. DaVita has a consensus target price of $118.50, indicating a potential downside of 10.27%. Given InnovAge’s higher possible upside, analysts plainly believe InnovAge is more favorable than DaVita.

Earnings and Valuation

This table compares InnovAge and DaVita’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$720.80 million	0.75	-$6.52 million	($0.25)	-15.88
DaVita	$12.14 billion	0.95	$691.53 million	$7.40	17.85

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

Profitability

This table compares InnovAge and DaVita’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-6.17%	-13.04%	-7.48%
DaVita	5.70%	64.42%	4.63%

Institutional & Insider Ownership

12.3% of InnovAge shares are held by institutional investors. Comparatively, 90.1% of DaVita shares are held by institutional investors. 0.4% of InnovAge shares are held by company insiders. Comparatively, 1.4% of DaVita shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

InnovAge has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, DaVita has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

DaVita beats InnovAge on 12 of the 13 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

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.