Critical Analysis: Ontrak (OTRK) versus The Competition

Ontrak (NASDAQ: OTRK) is one of 27 public companies in the “Miscellaneous health & allied services, not elsewhere classified” industry, but how does it compare to its rivals? We will compare Ontrak to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Ontrak -20.77% -54.79% -14.11%
Ontrak Competitors -39.15% 16.05% -9.95%

Insider and Institutional Ownership

33.0% of Ontrak shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Miscellaneous health & allied services, not elsewhere classified” companies are owned by institutional investors. 58.2% of Ontrak shares are owned by company insiders. Comparatively, 26.4% of shares of all “Miscellaneous health & allied services, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Ontrak and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ontrak 0 2 3 0 2.60
Ontrak Competitors 92 389 536 15 2.46

Ontrak currently has a consensus price target of $42.60, suggesting a potential upside of 17.10%. As a group, “Miscellaneous health & allied services, not elsewhere classified” companies have a potential upside of 8.00%. Given Ontrak’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ontrak is more favorable than its rivals.

Earnings & Valuation

This table compares Ontrak and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ontrak $82.84 million -$22.71 million -28.20
Ontrak Competitors $1.94 billion $96.17 million 41.46

Ontrak’s rivals have higher revenue and earnings than Ontrak. Ontrak 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.

Risk & Volatility

Ontrak has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, Ontrak’s rivals have a beta of 7.07, meaning that their average stock price is 607% more volatile than the S&P 500.

Summary

Ontrak rivals beat Ontrak on 8 of the 13 factors compared.

Ontrak Company Profile

Ontrak, Inc. operates as an artificial intelligence powered, virtualized outpatient healthcare treatment company that provides in-person or telehealth intervention services to health plans and other third-party payors. Its Ontrak PRE (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends care pathways that people are willing to follow, and engages people who aren't getting the care they need. The company's technology-enabled, OnTrak, program is designed to treat health plan members with unaddressed behavioral health conditions that cause or exacerbate chronic medical diseases, such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. The company was founded in 2003 and is headquartered in Santa Monica, California.

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