NantHealth (NASDAQ: NH) and Tabula Rasa Healthcare (NASDAQ:TRHC) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

7.1% of NantHealth shares are held by institutional investors. Comparatively, 31.9% of Tabula Rasa Healthcare shares are held by institutional investors. 58.0% of NantHealth shares are held by insiders. Comparatively, 45.8% of Tabula Rasa Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NantHealth and Tabula Rasa Healthcare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NantHealth $100.38 million 3.66 -$184.10 million ($1.78) -1.90
Tabula Rasa Healthcare $94.06 million 6.80 -$6.25 million ($0.25) -143.24

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

Risk and Volatility

NantHealth has a beta of -1.32, suggesting that its stock price is 232% less volatile than the S&P 500. Comparatively, Tabula Rasa Healthcare has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for NantHealth and Tabula Rasa Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NantHealth 0 0 4 0 3.00
Tabula Rasa Healthcare 0 1 5 0 2.83

NantHealth presently has a consensus target price of $9.00, suggesting a potential upside of 165.49%. Tabula Rasa Healthcare has a consensus target price of $28.33, suggesting a potential downside of 20.88%. Given NantHealth’s stronger consensus rating and higher probable upside, research analysts plainly believe NantHealth is more favorable than Tabula Rasa Healthcare.

Profitability

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

Net Margins Return on Equity Return on Assets
NantHealth -225.76% -46.09% -25.23%
Tabula Rasa Healthcare -2.27% -5.58% -3.49%

Summary

Tabula Rasa Healthcare beats NantHealth on 9 of the 13 factors compared between the two stocks.

About NantHealth

NantHealth, Inc. is a healthcare cloud-based information technology (IT) company. The Company is engaged in converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. The Company offers the Genomic Proteomic Spectrometry (GPS) Cancer test, a molecular test and decision support solution that measures the proteins present in the patient’s tumor tissue, combined with whole genomic and transcriptomic sequencing of tumor and normal samples. The Company also offers Nant Operating System (NantOS) and NantOS applications to healthcare providers and payors, self-insured employers and biopharmaceutical companies. It offers CLINICS, an integrated solution that includes GPS Cancer, NantOS and the NantOS applications. The CLINICS solution includes System Infrastructure, Knowledge Platform, Provider Platform and Payor Platform.

About Tabula Rasa Healthcare

Tabula Rasa HealthCare, Inc. (Tabula Rasa), formerly CareKinesis, Inc., is a provider of patient-specific, data-driven technology and solutions that enable healthcare organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations and manage risk. The Company delivers its solutions through a suite of technology-enabled products and services for medication risk management, which includes bundled prescription fulfillment and adherence packaging services for client populations with complex prescription needs. It also provides risk adjustment services, which help its clients to properly characterize a patient’s acuity, or severity of health condition, and optimize the associated payments for care. The Company serves approximately 100 healthcare organizations that focus on populations with complex healthcare needs and extensive medication requirements. Its products and services are built around the Medication Risk Mitigation Matrix, or MRM Matrix.

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