Critical Analysis: Castlight Health, inc. (CSLT) & Medical Transcription Billing, Corp. (MTBC)
Castlight Health, inc. (NYSE: CSLT) and Medical Transcription Billing, Corp. (NASDAQ:MTBC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
This is a breakdown of current ratings and target prices for Castlight Health, inc. and Medical Transcription Billing, Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Castlight Health, inc.||1||4||2||0||2.14|
|Medical Transcription Billing, Corp.||0||0||1||0||3.00|
Castlight Health, inc. currently has a consensus target price of $4.63, suggesting a potential upside of 12.80%. Medical Transcription Billing, Corp. has a consensus target price of $2.25, suggesting a potential upside of 66.67%. Given Medical Transcription Billing, Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe Medical Transcription Billing, Corp. is more favorable than Castlight Health, inc..
Volatility & Risk
Castlight Health, inc. has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Medical Transcription Billing, Corp. has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Valuation and Earnings
This table compares Castlight Health, inc. and Medical Transcription Billing, Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Castlight Health, inc.||$115.24 million||4.69||-$48.77 million||($0.45)||-9.11|
|Medical Transcription Billing, Corp.||$30.18 million||0.51||-$2.56 million||($1.08)||-1.25|
Medical Transcription Billing, Corp. has higher revenue, but lower earnings than Castlight Health, inc.. Castlight Health, inc. is trading at a lower price-to-earnings ratio than Medical Transcription Billing, Corp., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
41.3% of Castlight Health, inc. shares are held by institutional investors. Comparatively, 7.3% of Medical Transcription Billing, Corp. shares are held by institutional investors. 37.4% of Castlight Health, inc. shares are held by company insiders. Comparatively, 53.5% of Medical Transcription Billing, Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Castlight Health, inc. and Medical Transcription Billing, Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Castlight Health, inc.||-42.54%||-36.30%||-24.42%|
|Medical Transcription Billing, Corp.||-32.88%||-59.52%||-19.17%|
Castlight Health, inc. beats Medical Transcription Billing, Corp. on 7 of the 13 factors compared between the two stocks.
Castlight Health, inc. Company Profile
Castlight Health, Inc. offers a health benefits platform that engages employees to make healthcare decisions, and enables employers to communicate and measure their benefit programs. The Company operates through cloud-based products segment. Its technology offering aggregates data and applies analytics to make healthcare data transparent. Its products deliver employee engagement and enable employers to integrate benefit programs into a single platform available to employees and their families. Its health benefits platform engages external data and its substantial user base to provide a single, end-to-end solution that engages employees through personalized and relevant communications. Its offering provides employers the opportunity to communicate, measure, and get value out of their benefits and programs on a real-time basis. It offers cross-sell products, such as Castlight Action, Castlight Pharmacy, Castlight Dental, Castlight Elevate, Castlight Protect and Castlight Rewards.
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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