Critical Analysis: DaVita HealthCare Partners (DVA) vs. Streamline Health Solutions (STRM)
DaVita HealthCare Partners (NYSE: DVA) and Streamline Health Solutions (NASDAQ:STRM) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
This is a summary of recent ratings and target prices for DaVita HealthCare Partners and Streamline Health Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DaVita HealthCare Partners||2||6||1||0||1.89|
|Streamline Health Solutions||0||0||0||0||N/A|
DaVita HealthCare Partners presently has a consensus target price of $65.00, suggesting a potential upside of 9.52%. Given DaVita HealthCare Partners’ higher possible upside, equities analysts clearly believe DaVita HealthCare Partners is more favorable than Streamline Health Solutions.
Risk and Volatility
DaVita HealthCare Partners has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.
Insider and Institutional Ownership
83.2% of DaVita HealthCare Partners shares are owned by institutional investors. Comparatively, 37.9% of Streamline Health Solutions shares are owned by institutional investors. 2.1% of DaVita HealthCare Partners shares are owned by company insiders. Comparatively, 26.1% of Streamline Health Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares DaVita HealthCare Partners and Streamline Health Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
|Streamline Health Solutions||-24.50%||-56.04%||-15.49%|
Earnings & Valuation
This table compares DaVita HealthCare Partners and Streamline Health Solutions’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DaVita HealthCare Partners||$15.01 billion||0.76||$2.45 billion||$6.50||9.13|
|Streamline Health Solutions||$24.86 million||1.32||-$3.83 million||($0.31)||-5.32|
DaVita HealthCare Partners has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than DaVita HealthCare Partners, indicating that it is currently the more affordable of the two stocks.
DaVita HealthCare Partners beats Streamline Health Solutions on 10 of the 12 factors compared between the two stocks.
About DaVita HealthCare Partners
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
About Streamline Health Solutions
Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.
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