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

Risk and Volatility

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

Institutional & Insider Ownership

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

Valuation & Earnings

This table compares athenahealth and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
athenahealth $1.15 billion $127.70 million 152.64
athenahealth Competitors $376.98 million $34.79 million 8.27

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

Analyst Recommendations

This is a summary of recent ratings and price targets for athenahealth and its competitors, as reported by MarketBeat.

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 currently has a consensus target price of $148.77, indicating a potential upside of 21.84%. As a group, “Medical Software & Technology Services” companies have a potential upside of 19.19%. Given athenahealth’s higher possible upside, research analysts plainly believe athenahealth is more favorable than its competitors.

Profitability

This table compares athenahealth and its competitors’ 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%

Summary

athenahealth beats its competitors 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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