Contrasting Merge Healthcare (MRGE) and Its Peers

Merge Healthcare (NASDAQ: MRGE) is one of 114 public companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Merge Healthcare to related companies based on the strength of its earnings, risk, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional and Insider Ownership

57.8% of shares of all “Software” companies are held by institutional investors. 17.6% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Merge Healthcare and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Merge Healthcare N/A N/A 0.11
Merge Healthcare Competitors $2.20 billion $402.78 million 520.33

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Merge Healthcare and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merge Healthcare 0 0 0 0 N/A
Merge Healthcare Competitors 344 2229 4657 95 2.61

As a group, “Software” companies have a potential upside of 13.19%. Given Merge Healthcare’s rivals higher probable upside, analysts plainly believe Merge Healthcare has less favorable growth aspects than its rivals.

Profitability

This table compares Merge Healthcare and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merge Healthcare 3.02% 5.19% 1.77%
Merge Healthcare Competitors -45.81% -24.94% -7.50%

Summary

Merge Healthcare rivals beat Merge Healthcare on 5 of the 8 factors compared.

About Merge Healthcare

Merge Healthcare Incorporated develops software solutions that facilitate the sharing of images. The Company operates through two segments: Merge Healthcare and Merge DNA. The Company’s Merge Healthcare segment markets, sells and implements interoperability, imaging and clinical solutions to healthcare providers. The Company’s Merge DNA (Data and Analytics) segment focuses on the marketing and sale of data capture software for clinical trials and related solutions. The Merge Healthcare segment offers licensing of software (including upgrades), the sale of hardware, professional services, maintenance and electronic data interchange (EDI) services. The Merge DNA segment offers on-premise licensing and hosting arrangements, and professional services.

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