athenahealth (NYSE: FIS) and Fidelity National Information Servcs (NYSE:FIS) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares athenahealth and Fidelity National Information Servcs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
athenahealth 8.71% 14.71% 9.30%
Fidelity National Information Servcs 16.59% 15.42% 6.70%

Dividends

Fidelity National Information Servcs pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. athenahealth does not pay a dividend. Fidelity National Information Servcs pays out 29.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for athenahealth and Fidelity National Information Servcs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 0 13 7 0 2.35
Fidelity National Information Servcs 0 1 11 0 2.92

athenahealth presently has a consensus target price of $156.55, suggesting a potential upside of 2.15%. Fidelity National Information Servcs has a consensus target price of $114.50, suggesting a potential upside of 6.31%. Given Fidelity National Information Servcs’ stronger consensus rating and higher probable upside, analysts clearly believe Fidelity National Information Servcs is more favorable than athenahealth.

Risk & Volatility

athenahealth has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Fidelity National Information Servcs has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

88.1% of Fidelity National Information Servcs shares are held by institutional investors. 2.9% of athenahealth shares are held by insiders. Comparatively, 2.1% of Fidelity National Information Servcs 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.

Valuation & Earnings

This table compares athenahealth and Fidelity National Information Servcs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
athenahealth $1.22 billion 5.09 $53.10 million $1.57 97.62
Fidelity National Information Servcs $9.12 billion 3.88 $1.32 billion $4.42 24.37

Fidelity National Information Servcs has higher revenue and earnings than athenahealth. Fidelity National Information Servcs is trading at a lower price-to-earnings ratio than athenahealth, indicating that it is currently the more affordable of the two stocks.

Summary

Fidelity National Information Servcs beats athenahealth on 10 of the 16 factors compared between the two stocks.

athenahealth Company Profile

athenahealth, Inc., together with its subsidiaries, provides network-based medical record, revenue cycle, patient engagement, care coordination, and population health services for medical groups and health systems. It offers athenaCollector, a network-enabled billing and practice management solution; athenaClinicals, an electronic health record for managing patient's clinical documentation; athenaCommunicator, an engagement and communication solution that provides an automated communication service between patients and provider practices for interactions outside the exam room; and athenaCoordinator for order transmission and care coordination services. The company also provides athenahealth Population Health, a cloud-based population health service; and Epocrates services that include clinical information and decision support services in the areas of drug and disease information, medical calculator and tools, clinical guidelines, clinical messaging, and market research. In addition, it offers athenahealth Health Plan data exchange facilitates to exchange the data between providers and health plans for the healthcare operations of clients; athenaOne Analytics that includes an analytics and dashboard application, as well as provides visibility into the financial and operational health of an organization; and pre-certification processing and referral processing services. The company serves healthcare providers, medical groups, and health systems through its direct sales force and channel partners in the United States and internationally. athenahealth, Inc. was formerly known as athenahealth.com, Inc. and changed its name to athenahealth, Inc. in November 2000. The company was founded in 1997 and is headquartered in Watertown, Massachusetts.

Fidelity National Information Servcs Company Profile

Fidelity National Information Services, Inc. operates as a financial services technology company in the United States and internationally. It operates through Integrated Financial Solutions and Global Financial Solutions segments. The Integrated Financial Solutions segment offers core processing and ancillary applications; digital solutions, including Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity and wealth management services; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides capital markets, asset management, and insurance solutions, as well as banking and payments solutions to financial institutions, such as securities processing and finance, global trading, asset management and insurance, and retail banking and payment services. The company was founded in 1968 and is headquartered in Jacksonville, Florida.

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