Reviewing CommVault Systems (CVLT) and Merge Healthcare (MRGE)

Merge Healthcare (NASDAQ: MRGE) and CommVault Systems (NASDAQ:CVLT) are both technology 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.

Profitability

This table compares Merge Healthcare and CommVault Systems’ 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%
CommVault Systems -8.30% 0.32% 0.18%

Analyst Recommendations

This is a breakdown of current ratings for Merge Healthcare and CommVault Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merge Healthcare 0 0 0 0 N/A
CommVault Systems 0 2 7 0 2.78

CommVault Systems has a consensus target price of $69.78, suggesting a potential upside of 40.26%.

Insider & Institutional Ownership

90.8% of CommVault Systems shares are owned by institutional investors. 13.4% of CommVault Systems 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.

Valuation and Earnings

This table compares Merge Healthcare and CommVault Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Merge Healthcare N/A N/A N/A $0.17 N/A
CommVault Systems $650.52 million 3.44 $540,000.00 ($1.26) -39.48

CommVault Systems has higher revenue and earnings than Merge Healthcare. CommVault Systems is trading at a lower price-to-earnings ratio than Merge Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Merge Healthcare beats CommVault Systems on 5 of the 9 factors compared between the two stocks.

Merge Healthcare Company Profile

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.

CommVault Systems Company Profile

Commvault Systems, Inc. (Commvault) is a provider of data and information management software applications and related services. The Company develops, markets and sells a suite of software applications and services, primarily in North America, Europe, Australia and Asia, that provides its customers with data protection solutions supporting all operating systems, applications, and databases on virtual and physical servers, Network Attached Storage (NAS) shares, cloud-based infrastructures, and mobile devices; management through a single console; multiple protection methods, including backup and archive, snapshot management, replication, and content indexing for eDiscovery; storage management using deduplication for disk, tape and cloud; integration with the storage arrays; complete virtual infrastructure management supporting multiple hypervisors; security capabilities to limit access to critical data, and policy-based data management.

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