Medical Transcription Billing, Corp. (NASDAQ: MTBC) and Omnicell (NASDAQ:OMCL) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Earnings & Valuation

This table compares Medical Transcription Billing, Corp. and Omnicell’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Medical Transcription Billing, Corp. $30.18 million 1.16 -$2.56 million ($1.08) -2.84
Omnicell $680.15 million 2.95 $42.68 million ($0.22) -243.41

Omnicell has higher revenue and earnings than Medical Transcription Billing, Corp.. Omnicell 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Medical Transcription Billing, Corp. and Omnicell, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medical Transcription Billing, Corp. 0 0 1 0 3.00
Omnicell 0 1 6 0 2.86

Medical Transcription Billing, Corp. presently has a consensus target price of $2.25, suggesting a potential downside of 26.71%. Omnicell has a consensus target price of $51.86, suggesting a potential downside of 3.16%. Given Omnicell’s higher possible upside, analysts clearly believe Omnicell is more favorable than Medical Transcription Billing, Corp..

Insider and Institutional Ownership

7.4% of Medical Transcription Billing, Corp. shares are held by institutional investors. 53.5% of Medical Transcription Billing, Corp. shares are held by company insiders. Comparatively, 3.8% of Omnicell shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Medical Transcription Billing, Corp. has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Omnicell has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Medical Transcription Billing, Corp. and Omnicell’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%
Omnicell -1.14% 0.41% 0.19%

Summary

Omnicell beats Medical Transcription Billing, Corp. on 9 of the 13 factors compared between the two stocks.

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.

About Omnicell

Omnicell, Inc. provides automation and business analytics software solutions for patient-centric medication and supply management across the entire healthcare continuum, from the acute care hospital setting to post-acute skilled nursing and long-term care facilities to the home. It operates through two segments: Automation and Analytics, and Medication Adherence. The Automation and Analytics segment is engaged in the design, manufacturing, selling and servicing of medication and supply dispensing systems, pharmacy inventory management systems and related software. The Medication Adherence segment includes the development, manufacturing and selling of consumable medication blister cards, packaging equipment, medication synchronization platform, and ancillary products and services. Its products are used to manage medication administration outside of the hospital setting and include medication adherence products sold under the brand name MTS, Surgichem, SureMed and the Omnicell brand.

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