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

Earnings & Valuation

This table compares athenahealth and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
athenahealth $1.15 billion $127.70 million 150.78
athenahealth Competitors $376.98 million $34.79 million 8.02

athenahealth has higher revenue and earnings than its peers. athenahealth is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

athenahealth has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, athenahealth’s peers have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.

Profitability

This table compares athenahealth and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
athenahealth 2.80% 6.91% 3.80%
athenahealth Competitors -18.12% -11.70% -2.05%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for athenahealth and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 2 11 11 0 2.38
athenahealth Competitors 70 391 761 10 2.58

athenahealth presently has a consensus price target of $148.77, suggesting a potential upside of 23.34%. As a group, “Medical Software & Technology Services” companies have a potential upside of 18.88%. Given athenahealth’s higher probable upside, equities research analysts plainly believe athenahealth is more favorable than its peers.

Insider and Institutional Ownership

63.1% of shares of all “Medical Software & Technology Services” companies are held by institutional investors. 3.2% of athenahealth shares are held by company insiders. Comparatively, 24.4% of shares of all “Medical Software & Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

athenahealth beats its peers on 8 of the 13 factors compared.

About athenahealth

athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.

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