Reviewing athenahealth (ATHN) & Medical Transcription Billing, Corp. (MTBC)
athenahealth (NASDAQ: ATHN) and Medical Transcription Billing, Corp. (NASDAQ:MTBC) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares athenahealth and Medical Transcription Billing, Corp.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|athenahealth||$1.15 billion||5.36||$127.70 million||$0.80||193.54|
|Medical Transcription Billing, Corp.||$27.60 million||0.49||-$3.02 million||($1.03)||-1.14|
athenahealth has higher revenue and earnings than Medical Transcription Billing, Corp.. Medical Transcription Billing, Corp. is trading at a lower price-to-earnings ratio than athenahealth, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for athenahealth and Medical Transcription Billing, Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medical Transcription Billing, Corp.||0||0||1||0||3.00|
athenahealth presently has a consensus price target of $146.70, indicating a potential downside of 5.25%. Medical Transcription Billing, Corp. has a consensus price target of $2.25, indicating a potential upside of 92.31%. Given Medical Transcription Billing, Corp.’s stronger consensus rating and higher possible upside, analysts clearly believe Medical Transcription Billing, Corp. is more favorable than athenahealth.
Insider & Institutional Ownership
9.6% of Medical Transcription Billing, Corp. shares are owned by institutional investors. 3.2% of athenahealth shares are owned by insiders. Comparatively, 53.5% of Medical Transcription Billing, Corp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
athenahealth has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Medical Transcription Billing, Corp. has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
This table compares athenahealth and Medical Transcription Billing, Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medical Transcription Billing, Corp.||-34.49%||-72.93%||-23.97%|
athenahealth beats Medical Transcription Billing, Corp. on 9 of the 13 factors compared between the two stocks.
athenahealth Company Profile
athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.
Medical Transcription Billing, Corp. Company Profile
Medical Transcription Billing, Corp. is a healthcare information technology company that provides an integrated suite of Web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings. The Company’s offering, PracticePro, allows healthcare practices with the core software and business services on Software-as-a-Service (SaaS) platform. PracticePro includes practice management software and related tools, which facilitate the day-to-day operation of a medical practice; electronic health records (EHR), which allow its customers to qualify for government incentives; revenue cycle management (RCM) services, which include medical billing, analytics and related services, and mobile Health (mHealth) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The Company offers a clearinghouse service, which allows clients to track claim status.
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