Analyzing Tabula Rasa HealthCare (TRHC) & Liquidity Services (LQDT)

Tabula Rasa HealthCare (NASDAQ:TRHC) and Liquidity Services (NASDAQ:LQDT) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

Tabula Rasa HealthCare has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tabula Rasa HealthCare and Liquidity Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tabula Rasa HealthCare $204.27 million 6.40 -$47.27 million $0.34 181.97
Liquidity Services $224.51 million 1.09 -$11.61 million ($0.50) -14.76

Liquidity Services has higher revenue and earnings than Tabula Rasa HealthCare. Liquidity Services is trading at a lower price-to-earnings ratio than Tabula Rasa HealthCare, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tabula Rasa HealthCare and Liquidity Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tabula Rasa HealthCare -23.14% 7.76% 3.69%
Liquidity Services -7.70% -11.08% -7.13%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tabula Rasa HealthCare and Liquidity Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tabula Rasa HealthCare 0 1 7 1 3.00
Liquidity Services 0 0 1 0 3.00

Tabula Rasa HealthCare presently has a consensus target price of $87.37, indicating a potential upside of 41.22%. Liquidity Services has a consensus target price of $10.00, indicating a potential upside of 35.50%. Given Tabula Rasa HealthCare’s higher possible upside, equities analysts clearly believe Tabula Rasa HealthCare is more favorable than Liquidity Services.

Institutional & Insider Ownership

80.5% of Tabula Rasa HealthCare shares are owned by institutional investors. Comparatively, 64.9% of Liquidity Services shares are owned by institutional investors. 14.0% of Tabula Rasa HealthCare shares are owned by insiders. Comparatively, 18.7% of Liquidity Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tabula Rasa HealthCare beats Liquidity Services on 10 of the 14 factors compared between the two stocks.

About Tabula Rasa HealthCare

Tabula Rasa HealthCare, Inc. operates as a healthcare technology company in the United States. It offers medication risk management, pharmacy cost management, and medicare risk adjustment services. The company offers its technology-enabled products and services to prescribers, pharmacists, and healthcare organizations for medication risk management and risk adjustment. Tabula Rasa HealthCare, Inc. was founded in 2009 and is headquartered in Moorestown, New Jersey.

About Liquidity Services

Liquidity Services, Inc. provides e-commerce marketplace that enable buyers and sellers to transact in an automated environment offering approximately 500 product categories. The company's marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and capital assets; govdeals.com that enables local and state government entities, including city, county, and state agencies to sell surplus and salvage assets, as well as offers a suite of services that includes asset sales and marketing, and seller self-service; and auctiondeals.com, a self-service solution, which enable sellers list their own assets, and enable commercial businesses to sell surplus and salvage assets. It also operates networkintl.com, which enables corporations to sell idle, surplus, and scrap equipment in the oil and gas, petrochemical, and power generation industries; go-dove.com marketplace for corporations located in the United States, Europe, and Asia to sell manufacturing surplus and salvage capital assets, and scrap material; secondipity.com that provides consumers a source of products through donating a portion of the proceeds of sale to charity; and machinio.com, a search engine for used machinery and equipment. The company's marketplaces provide professional buyers access to supply of new, surplus, and scrap assets presented with digital images and other relevant product information; and enable corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. It offers approximately 500 product categories in industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment, and specialty equipment. The company was founded in 1999 and is headquartered in Bethesda, Maryland.

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