NantHealth (NASDAQ: NETE) and Net Element (NASDAQ:NETE) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

NantHealth has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Net Element has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for NantHealth and Net Element, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NantHealth 0 1 2 0 2.67
Net Element 0 0 0 0 N/A

NantHealth currently has a consensus target price of $4.83, indicating a potential upside of 118.70%. Given NantHealth’s higher possible upside, equities analysts plainly believe NantHealth is more favorable than Net Element.

Profitability

This table compares NantHealth and Net Element’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NantHealth -124.02% -49.56% -20.32%
Net Element -13.22% -88.17% -30.52%

Institutional and Insider Ownership

5.6% of NantHealth shares are owned by institutional investors. Comparatively, 3.2% of Net Element shares are owned by institutional investors. 64.9% of NantHealth shares are owned by insiders. Comparatively, 27.9% of Net Element shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares NantHealth and Net Element’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NantHealth $86.68 million 2.79 -$175.21 million ($1.12) -1.97
Net Element $60.06 million 0.40 -$9.91 million ($5.04) -1.25

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

Summary

NantHealth beats Net Element on 9 of the 13 factors compared between the two stocks.

NantHealth Company Profile

NantHealth, Inc., together with its subsidiaries, operates as an evidence-based personalized healthcare company in the United States and internationally. The company engages in converging science and technology through an integrated clinical platform to provide health information at the point of care. It develops NantHealth solution, an adaptive learning system, including molecular profiling solution, software, and hardware systems infrastructure that collects, indexes, analyzes, and interprets various molecular, clinical, operational, and financial data points derived from various sources to enhance decision-making. The company's products include GPS Cancer, a molecular profile that integrates whole genome sequencing of tumor and normal germline samples, whole transcriptome sequencing, and quantitative proteomics; GPS Cancer Report, a GPS cancer solution; GPS in rare diseases and chronic illnesses; and Eviti, a decision support solution. It also provides Web-based and mobile software solutions, such as Device Connectivity Suite, a device connectivity and near real-time biometric software and hardware suite; DeviceConX, a device data normalization software; HBox, an Internet of Medical Things and Internet of Things hardware hub; and VitalsConX, a tablet-optimized application. In addition, NantHealth, Inc. offers NaviNet Open, a payer-provider collaboration platform comprising plan central, eligibility and benefit, claims status inquiry, claims management, referral, authorization, document exchange, and AllPayer services; and cloud-based computing, storage, and transport infrastructure-as-a-service solutions. The company was formerly known as Nant Health, LLC and changed its name to NantHealth, Inc. in June 2016. The company was founded in 2010 and is headquartered in Culver City, California. NantHealth, Inc. is as a subsidiary of NantWorks, LLC.

Net Element Company Profile

Net Element, Inc. operates as a financial technology and value-added solutions company. It operates in two segments, North American Transaction Solutions, and International Transaction Solutions. The company offers a range of payment acceptance and processing services that enable merchants of various sizes to accept and process approximately 100 payment options, including credit, debit, prepaid, and alternative payments; and value-added services and technologies, such as integrated payment technologies, point-of-sale solutions (POS), security solutions, fraud management, information solutions, and analytical tools. Its services include Unified Payments, a payment acceptance solution; Unified m-POS, an easy-to-use mobile application for small and medium sized businesses (SMB); Aptito, a cloud-based POS platform for the hospitality industry and SMB merchants; Restoactive, a visual POS integration solution for restaurants; Zero Pay, a payment acceptance program for SMB merchants; PayOnline, an integrated e-commerce and mobile payments processing platform, and fraud management system; Pay?Travel, a payment processing solutions to the travel industry; Sales Central, a cloud-based solution to enhance responsiveness of indirect non-bank sales forces and sales efficiency; Netevia, which delivers end-to-end payment processing through easy-to-use APIs; and Digital Provider, an integrated direct-carrier and mobile operator solution for smaller content providers and merchants throughout selected international markets. It operates in North America, Russia, Europe, Asia, and the Commonwealth of Independent States. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is based in North Miami Beach, Florida.

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