Air Methods (NASDAQ: AIRM) and Streamline Health Solutions (NASDAQ:STRM) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Air Methods and Streamline Health Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Methods 0 3 1 0 2.25
Streamline Health Solutions 0 0 0 0 N/A

Air Methods presently has a consensus target price of $43.00, indicating a potential upside of 0.12%. Given Air Methods’ higher probable upside, equities analysts plainly believe Air Methods is more favorable than Streamline Health Solutions.

Valuation and Earnings

This table compares Air Methods and Streamline Health Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Methods N/A N/A N/A $2.59 16.58
Streamline Health Solutions $27.06 million 0.94 -$5.16 million ($0.31) -4.10

Air Methods has higher earnings, but lower revenue than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Air Methods, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Air Methods and Streamline Health Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Methods 6.67% 14.18% 4.43%
Streamline Health Solutions -24.50% -56.04% -15.49%

Institutional & Insider Ownership

35.9% of Streamline Health Solutions shares are held by institutional investors. 9.0% of Air Methods shares are held by insiders. Comparatively, 26.1% of Streamline Health Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Air Methods beats Streamline Health Solutions on 6 of the 9 factors compared between the two stocks.

Air Methods Company Profile

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

Streamline Health Solutions Company Profile

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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