Reviewing MedAssets (MDAS) and The Competition

MedAssets (NASDAQ: MDAS) is one of 183 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare MedAssets to related businesses based on the strength of its risk, dividends, institutional ownership, earnings, profitability, analyst recommendations and valuation.

Insider & Institutional Ownership

62.6% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 16.9% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares MedAssets and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MedAssets N/A N/A -53.14
MedAssets Competitors $2.81 billion $290.95 million 315.54

MedAssets’ peers have higher revenue and earnings than MedAssets. MedAssets is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
MedAssets -1.18% -2.00% -0.54%
MedAssets Competitors -22.12% -258.54% -3.91%

Analyst Recommendations

This is a summary of recent ratings and price targets for MedAssets and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MedAssets 0 0 0 0 N/A
MedAssets Competitors 834 4765 7505 182 2.53

As a group, “IT Services & Consulting” companies have a potential downside of 2.49%. Given MedAssets’ peers higher probable upside, analysts plainly believe MedAssets has less favorable growth aspects than its peers.

Summary

MedAssets peers beat MedAssets on 5 of the 8 factors compared.

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.

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