Analyzing Evolent Health (EVH) and Medical Transcription Billing, Corp. (MTBC)
Evolent Health (NYSE: EVH) and Medical Transcription Billing, Corp. (NASDAQ:MTBC) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
This table compares Evolent Health 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.||-32.88%||-59.52%||-19.17%|
Institutional and Insider Ownership
82.5% of Evolent Health shares are held by institutional investors. Comparatively, 7.3% of Medical Transcription Billing, Corp. shares are held by institutional investors. 8.8% of Evolent Health shares are held by insiders. Comparatively, 53.5% of Medical Transcription Billing, Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Evolent Health has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Medical Transcription Billing, Corp. has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
This is a summary of current recommendations for Evolent Health and Medical Transcription Billing, Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medical Transcription Billing, Corp.||0||0||1||0||3.00|
Evolent Health presently has a consensus price target of $28.45, indicating a potential upside of 71.41%. Medical Transcription Billing, Corp. has a consensus price target of $2.25, indicating a potential downside of 21.33%. Given Evolent Health’s stronger consensus rating and higher possible upside, analysts clearly believe Evolent Health is more favorable than Medical Transcription Billing, Corp..
Earnings and Valuation
This table compares Evolent Health and Medical Transcription Billing, Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Evolent Health||$361.53 million||3.43||-$51.15 million||($1.21)||-13.72|
|Medical Transcription Billing, Corp.||$30.18 million||1.09||-$2.56 million||($1.08)||-2.65|
Medical Transcription Billing, Corp. has higher revenue, but lower earnings than Evolent Health. Evolent Health 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.
Evolent Health beats Medical Transcription Billing, Corp. on 10 of the 14 factors compared between the two stocks.
About Evolent Health
Evolent Health, Inc. is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models. The Company’s services include providing its customers, with a population management platform, integrated data and analytics capabilities, pharmacy benefit management (PBM) services and comprehensive health plan administration services. Its value-based operations are empowered and supported by Identifi. Identifi is the Company’s technology platform that aggregates and analyzes data, manages care workflows and engages patients.
About Medical Transcription Billing, Corp.
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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