Streamline Health Solutions (NASDAQ: STRM) and Select Medical (NYSE:SEM) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk and Volatility
Streamline Health Solutions has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Select Medical has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
This table compares Streamline Health Solutions and Select Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Streamline Health Solutions||-16.88%||-40.97%||-10.96%|
This is a summary of current ratings and price targets for Streamline Health Solutions and Select Medical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Streamline Health Solutions||0||0||0||0||N/A|
Select Medical has a consensus target price of $20.43, indicating a potential upside of 23.06%. Given Select Medical’s higher possible upside, analysts plainly believe Select Medical is more favorable than Streamline Health Solutions.
Valuation & Earnings
This table compares Streamline Health Solutions and Select Medical’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Streamline Health Solutions||$27.06 million||1.24||-$5.16 million||($0.21)||-8.00|
|Select Medical||$4.29 billion||0.52||$115.41 million||$0.72||23.13|
Select Medical has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Select Medical, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
36.9% of Streamline Health Solutions shares are owned by institutional investors. Comparatively, 78.1% of Select Medical shares are owned by institutional investors. 26.1% of Streamline Health Solutions shares are owned by insiders. Comparatively, 19.9% of Select Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Select Medical beats Streamline Health Solutions on 10 of the 12 factors compared between the two stocks.
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.
Select Medical Company Profile
Select Medical Holdings Corporation is an operator of specialty hospitals, outpatient rehabilitation clinics and occupational medicine centers in the United States. The Company’s segments include specialty hospitals, outpatient rehabilitation, Concentra and Other. The specialty hospitals segment consists of hospitals designed to serve the needs of long term acute patients and hospitals designed to serve patients that require intensive medical rehabilitation care. The outpatient rehabilitation segment consists of clinics that provide physical, occupational, and speech rehabilitation services. The Concentra segment consists of medical centers and contract services provided at employer worksites and Department of Veterans Affairs community-based outpatient clinics (CBOCs) that deliver occupational medicine, physical therapy, veteran’s healthcare, and consumer health services. As of December 31, 2016, the Company had operations in 46 states and the District of Columbia.
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