athenahealth (ATHN) & Its Rivals Critical Analysis
athenahealth (NASDAQ: ATHN) is one of 18 publicly-traded companies in the “Medical Software & Technology Services” industry, but how does it weigh in compared to its competitors? We will compare athenahealth to similar businesses based on the strength of its earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
This table compares athenahealth and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for athenahealth and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
athenahealth currently has a consensus target price of $145.91, suggesting a potential upside of 15.76%. As a group, “Medical Software & Technology Services” companies have a potential upside of 9.88%. Given athenahealth’s higher possible upside, research analysts clearly believe athenahealth is more favorable than its competitors.
Institutional and Insider Ownership
59.5% of shares of all “Medical Software & Technology Services” companies are held by institutional investors. 3.2% of athenahealth shares are held by company insiders. Comparatively, 26.7% of shares of all “Medical Software & Technology Services” companies are held by company 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 & Risk
athenahealth has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, athenahealth’s competitors have a beta of 1.33, suggesting that their average share price is 33% more volatile than the S&P 500.
Valuation & Earnings
This table compares athenahealth and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|athenahealth||$1.15 billion||$127.70 million||163.69|
|athenahealth Competitors||$376.98 million||$34.79 million||9.08|
athenahealth has higher revenue and earnings than its competitors. athenahealth is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
athenahealth beats its competitors on 8 of the 13 factors compared.
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.
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