Contrasting Change Healthcare (NASDAQ:CHNG) & NantHealth (NASDAQ:NH)

Change Healthcare (NASDAQ:CHNG) and NantHealth (NASDAQ:NH) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Change Healthcare and NantHealth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 13 4 0 2.24
NantHealth 0 0 0 0 N/A

Change Healthcare presently has a consensus price target of $24.17, suggesting a potential upside of 11.93%. Given Change Healthcare’s higher possible upside, analysts clearly believe Change Healthcare is more favorable than NantHealth.

Earnings and Valuation

This table compares Change Healthcare and NantHealth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Change Healthcare $3.09 billion 2.17 -$112.21 million $1.20 17.99
NantHealth $73.17 million 2.77 -$56.33 million ($0.26) -6.77

NantHealth has lower revenue, but higher earnings than Change Healthcare. NantHealth is trading at a lower price-to-earnings ratio than Change Healthcare, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Change Healthcare has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.

Insider and Institutional Ownership

93.8% of Change Healthcare shares are owned by institutional investors. Comparatively, 5.4% of NantHealth shares are owned by institutional investors. 1.5% of Change Healthcare shares are owned by company insiders. Comparatively, 61.1% of NantHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Change Healthcare and NantHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare -1.75% 12.99% 4.16%
NantHealth -88.73% N/A -17.11%

Summary

Change Healthcare beats NantHealth on 8 of the 13 factors compared between the two stocks.

About Change Healthcare

Change Healthcare, Inc. engages in the development of healthcare technology platform that offers data and analytics-driven solutions. It operates through the following segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides solutions for revenue cycle management, provider network management, payment accuracy, value-based payments, clinical decision support, consumer engagement, risk adjustment and quality performance, and imaging and clinical workflow. The Network Solutions segment offers solutions for financial, administrative, clinical and pharmacy transactions, electronic payments, and aggregation and analytics of clinical and financial data. The Technology-Enabled Services includes solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2007 and is headquartered in Nashville, TN.

About NantHealth

NantHealth, Inc. is an evidence-based, personalized healthcare company, which engages in the provision of treatment for critical diseases such as cancer. Its solutions include empower treatment decisions; improve patient outcomes; validate treatment options; enable high-quality care; lower costs; ensure appropriate reimbursement; and streamline implementation and deployment. The company was founded by Patrick Soon-Shiong in July 2010 and is headquartered in Culver City, CA.

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