The Providence Service (NASDAQ: PRSC) and Streamline Health Solutions (NASDAQ:STRM) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
This table compares The Providence Service and Streamline Health Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Providence Service||4.91%||6.29%||2.63%|
|Streamline Health Solutions||-16.88%||-40.97%||-10.96%|
This is a breakdown of current ratings for The Providence Service and Streamline Health Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Providence Service||0||1||1||0||2.50|
|Streamline Health Solutions||0||0||0||0||N/A|
The Providence Service currently has a consensus target price of $67.00, suggesting a potential upside of 1.84%. Given The Providence Service’s higher probable upside, equities research analysts clearly believe The Providence Service is more favorable than Streamline Health Solutions.
Insider & Institutional Ownership
95.5% of The Providence Service shares are owned by institutional investors. Comparatively, 35.9% of Streamline Health Solutions shares are owned by institutional investors. 18.9% of The Providence Service shares are owned by insiders. Comparatively, 26.1% of Streamline Health Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
The Providence Service has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.
Valuation and Earnings
This table compares The Providence Service and Streamline Health Solutions’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Providence Service||$1.58 billion||0.55||$91.92 million||$5.58||11.79|
|Streamline Health Solutions||$27.06 million||1.35||-$5.16 million||($0.21)||-8.71|
The Providence Service has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than The Providence Service, indicating that it is currently the more affordable of the two stocks.
The Providence Service beats Streamline Health Solutions on 11 of the 13 factors compared between the two stocks.
The Providence Service Company Profile
The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.
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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