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

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 4.27% 7.13% 4.12%
athenahealth Competitors -18.04% -11.69% -2.04%

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
athenahealth $1.15 billion $127.70 million 157.55
athenahealth Competitors $376.98 million $34.79 million 8.61

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 2 12 10 0 2.33
athenahealth Competitors 75 398 775 12 2.57

athenahealth currently has a consensus target price of $147.00, indicating a potential upside of 16.63%. As a group, “Medical Software & Technology Services” companies have a potential upside of 9.87%. Given athenahealth’s higher probable upside, analysts clearly believe athenahealth is more favorable than its peers.

Insider and Institutional Ownership

59.5% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 3.2% of athenahealth shares are owned by company insiders. Comparatively, 26.7% of shares of all “Medical Software & Technology Services” companies are owned 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.

Volatility & Risk

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

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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