Allscripts Healthcare Solutions (NASDAQ: MDRX) and Tabula Rasa Healthcare (NASDAQ:TRHC) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Allscripts Healthcare Solutions and Tabula Rasa Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions -11.54% 5.97% 1.96%
Tabula Rasa Healthcare -10.27% -9.58% -4.51%

Analyst Ratings

This is a summary of recent ratings for Allscripts Healthcare Solutions and Tabula Rasa Healthcare, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 6 12 0 2.58
Tabula Rasa Healthcare 0 1 4 0 2.80

Allscripts Healthcare Solutions presently has a consensus price target of $15.24, suggesting a potential upside of 9.21%. Tabula Rasa Healthcare has a consensus price target of $24.60, suggesting a potential downside of 6.32%. Given Allscripts Healthcare Solutions’ higher probable upside, equities research analysts clearly believe Allscripts Healthcare Solutions is more favorable than Tabula Rasa Healthcare.

Valuation and Earnings

This table compares Allscripts Healthcare Solutions and Tabula Rasa Healthcare’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allscripts Healthcare Solutions $1.66 billion 1.52 $160.09 million ($1.06) -13.16
Tabula Rasa Healthcare $108.83 million 4.17 $2.26 million ($0.74) -35.49

Allscripts Healthcare Solutions has higher revenue and earnings than Tabula Rasa Healthcare. Tabula Rasa Healthcare is trading at a lower price-to-earnings ratio than Allscripts Healthcare Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.9% of Tabula Rasa Healthcare shares are held by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are held by insiders. Comparatively, 45.8% of Tabula Rasa Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Allscripts Healthcare Solutions Company Profile

Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.

Tabula Rasa Healthcare Company Profile

Tabula Rasa HealthCare, Inc. (Tabula Rasa), formerly CareKinesis, Inc., is a provider of patient-specific, data-driven technology and solutions that enable healthcare organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations and manage risk. The Company delivers its solutions through a suite of technology-enabled products and services for medication risk management, which includes bundled prescription fulfillment and adherence packaging services for client populations with complex prescription needs. It also provides risk adjustment services, which help its clients to properly characterize a patient’s acuity, or severity of health condition, and optimize the associated payments for care. The Company serves approximately 100 healthcare organizations that focus on populations with complex healthcare needs and extensive medication requirements. Its products and services are built around the Medication Risk Mitigation Matrix, or MRM Matrix.

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