Allscripts Healthcare Solutions (NASDAQ: MDRX) is one of 18 public companies in the “Medical Software & Technology Services” industry, but how does it contrast to its competitors? We will compare Allscripts Healthcare Solutions to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, profitability, analyst recommendations and risk.

Risk and Volatility

Allscripts Healthcare Solutions has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Allscripts Healthcare Solutions’ competitors have a beta of 1.33, suggesting that their average share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Allscripts Healthcare Solutions and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 6 10 0 2.53
Allscripts Healthcare Solutions Competitors 113 479 788 16 2.51

Allscripts Healthcare Solutions presently has a consensus price target of $14.67, suggesting a potential upside of 6.74%. As a group, “Medical Software & Technology Services” companies have a potential upside of 16.82%. Given Allscripts Healthcare Solutions’ competitors higher possible upside, analysts plainly believe Allscripts Healthcare Solutions has less favorable growth aspects than its competitors.

Profitability

This table compares Allscripts Healthcare Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions -11.54% 5.97% 1.96%
Allscripts Healthcare Solutions Competitors -18.37% -12.09% -2.31%

Institutional & Insider Ownership

63.1% of shares of all “Medical Software & Technology Services” companies are held by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are held by insiders. Comparatively, 21.9% of shares of all “Medical Software & Technology Services” companies are held by 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.

Earnings and Valuation

This table compares Allscripts Healthcare Solutions and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Allscripts Healthcare Solutions $1.66 billion $160.09 million -12.96
Allscripts Healthcare Solutions Competitors $376.15 million $34.64 million 9.21

Allscripts Healthcare Solutions has higher revenue and earnings than its competitors. Allscripts Healthcare Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Allscripts Healthcare Solutions beats its competitors on 8 of the 12 factors compared.

Allscripts Healthcare Solutions Company Profile

Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.

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