Merge Healthcare (NASDAQ: MRGE) and Tyler Technologies (NYSE:TYL) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares Merge Healthcare and Tyler Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Merge Healthcare $28,560.00 N/A N/A N/A N/A
Tyler Technologies $776.29 million 8.60 $168.45 million $2.70 66.69

Tyler Technologies has higher revenue and earnings than Merge Healthcare.

Insider and Institutional Ownership

90.0% of Tyler Technologies shares are owned by institutional investors. 10.3% of Tyler Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Merge Healthcare and Tyler Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merge Healthcare 3.02% 5.19% 1.77%
Tyler Technologies 13.48% 13.12% 8.60%

Analyst Ratings

This is a summary of recent ratings for Merge Healthcare and Tyler Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merge Healthcare 0 0 0 0 N/A
Tyler Technologies 0 0 8 0 3.00

Tyler Technologies has a consensus price target of $185.25, suggesting a potential upside of 2.88%. Given Tyler Technologies’ higher possible upside, analysts clearly believe Tyler Technologies is more favorable than Merge Healthcare.

Summary

Tyler Technologies beats Merge Healthcare on 8 of the 8 factors compared between the two stocks.

About Merge Healthcare

Merge Healthcare Incorporated develops software solutions that facilitate the sharing of images. The Company operates through two segments: Merge Healthcare and Merge DNA. The Company’s Merge Healthcare segment markets, sells and implements interoperability, imaging and clinical solutions to healthcare providers. The Company’s Merge DNA (Data and Analytics) segment focuses on the marketing and sale of data capture software for clinical trials and related solutions. The Merge Healthcare segment offers licensing of software (including upgrades), the sale of hardware, professional services, maintenance and electronic data interchange (EDI) services. The Merge DNA segment offers on-premise licensing and hosting arrangements, and professional services.

About Tyler Technologies

Tyler Technologies, Inc. is a provider of information management solutions and services for the public sector, with a focus on local governments. The Company operates through two segments: Enterprise Software (ES) segment and The Appraisal and Tax (A&T) segment. ES segment provides municipal and county governments and schools with software systems and services for information technology and automation needs that includes back-office functions, such as financial management, courts and justice processes, public safety, planning regulatory and maintenance, and land and vital records management. A&T segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities.

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