VMware (NYSE: VMW) and MedAssets (NASDAQ:MDAS) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Earnings and Valuation

This table compares VMware and MedAssets’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
VMware $7.09 billion 6.77 $1.85 billion $3.16 37.15
MedAssets N/A N/A N/A N/A N/A

VMware has higher revenue and earnings than MedAssets.

Analyst Ratings

This is a summary of current recommendations and price targets for VMware and MedAssets, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VMware 0 13 18 0 2.58
MedAssets 0 0 0 0 N/A

VMware presently has a consensus price target of $113.00, suggesting a potential downside of 3.75%. Given VMware’s higher probable upside, analysts clearly believe VMware is more favorable than MedAssets.

Insider and Institutional Ownership

21.8% of VMware shares are owned by institutional investors. 0.5% of VMware shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares VMware and MedAssets’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VMware 17.58% 16.08% 8.02%
MedAssets -1.18% -2.00% -0.54%

Summary

VMware beats MedAssets on 8 of the 8 factors compared between the two stocks.

About VMware

VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.

About MedAssets

MedAssets, Inc. (MedAssets) provides technology-enabled products and services to healthcare organizations, including hospitals, health systems, non-acute healthcare providers, payers, other service providers and product manufacturers. The Company operates its business through two business segments: Spend and Clinical Resource Management (SCM) and Revenue Cycle Management (RCM). The SCM segment delivers market insight, performance improvement advisory and cost management capabilities to healthcare providers. The RCM segment provides revenue cycle management solutions to healthcare providers, primarily hospitals and health systems. The Company’s technology-enabled solutions are delivered through the Company-hosted software or software as a service (SaaS) or Web-based applications. Its Web-based applications employ cloud computing by using the Internet to deploy the Company’s solutions across decentralized health care organizations, providing standardization and compliance.

Receive News & Ratings for VMware Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VMware Inc. and related companies with MarketBeat.com's FREE daily email newsletter.