IMS Health (IMS) and Its Rivals Critical Review

IMS Health (NYSE: IMS) is one of 188 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare IMS Health to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.

Earnings and Valuation

This table compares IMS Health and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
IMS Health N/A N/A 74.62
IMS Health Competitors $2.81 billion $290.95 million 337.39

IMS Health’s peers have higher revenue and earnings than IMS Health. IMS Health 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.

Analyst Ratings

This is a breakdown of recent recommendations for IMS Health and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IMS Health 0 0 0 0 N/A
IMS Health Competitors 851 4825 7609 185 2.53

As a group, “IT Services & Consulting” companies have a potential downside of 3.52%. Given IMS Health’s peers higher probable upside, analysts plainly believe IMS Health has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
IMS Health 2.99% 5.62% 1.22%
IMS Health Competitors -22.11% -270.97% -4.73%

Insider and Institutional Ownership

90.3% of IMS Health shares are held by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.5% of IMS Health shares are held by insiders. Comparatively, 17.5% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

About IMS Health

IMS Health Holdings, Inc. (IMS) is an information and technology services company that provides solutions to its clients in the healthcare industry. The Company has its presence in over 100 countries. The Company’s data set contains over 10 petabytes of data and over 500 million patient records. It serves healthcare organizations and life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The Company’s principal information offerings include national information offerings, sub-national information offerings and OneKey. Its technology services offerings include technology solutions, real-world evidence solutions, and workflow analytics and consulting services. It offers technology services that include data warehousing, information technology (IT) outsourcing, software applications and other services.

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