Comparing Change Healthcare (NASDAQ:CHNG) & SciPlay (NASDAQ:SCPL)

Change Healthcare (NASDAQ:CHNG) and SciPlay (NASDAQ:SCPL) are both mid-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Change Healthcare and SciPlay’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare -3.63% 11.82% 3.75%
SciPlay 3.54% 5.31% 4.04%

Analyst Ratings

This is a breakdown of current recommendations for Change Healthcare and SciPlay, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 14 4 0 2.22
SciPlay 1 9 3 0 2.15

Change Healthcare presently has a consensus target price of $23.55, suggesting a potential upside of 6.13%. SciPlay has a consensus target price of $19.19, suggesting a potential upside of 16.18%. Given SciPlay’s higher probable upside, analysts clearly believe SciPlay is more favorable than Change Healthcare.

Volatility and Risk

Change Healthcare has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, SciPlay has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Institutional & Insider Ownership

94.8% of Change Healthcare shares are held by institutional investors. Comparatively, 16.6% of SciPlay shares are held by institutional investors. 1.5% of Change Healthcare shares are held by company insiders. Comparatively, 0.2% of SciPlay shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Change Healthcare and SciPlay’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Change Healthcare $3.09 billion 2.23 -$112.21 million $1.20 18.49
SciPlay $582.20 million 3.63 $20.90 million $0.86 19.21

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

Summary

Change Healthcare beats SciPlay on 8 of the 14 factors compared between the two stocks.

Change Healthcare Company Profile

Change Healthcare Inc., an independent healthcare technology company, provides data and analytics-driven solutions to enhance clinical, financial, administrative, and patient engagement outcomes in the United States healthcare system. It operates through three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment offers software and analytics solutions for revenue cycle management, provider network management, payment accuracy, clinical decision support, value-based payment, consumer engagement, risk adjustment and quality performance, and imaging and clinical workflow. The Network Solutions segment provides solutions for financial, administrative, and clinical and pharmacy transactions; connected consumer health; intelligent healthcare network; electronic business-to-business and consumer-to-business payments; data; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment offers solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company serves commercial insurers, private insurers, BlueCross Blue Shield plans, Medicare/Medicaid plans, provider-sponsored payers, third party administrators, emerging technology and data-driven health plans, and other specialty health benefits insurers, as well as hospitals and health systems, physician practices, dentists, pharmacies, skilled nursing facilities, home health agencies, telehealth providers, senior care facilities, laboratories, and other healthcare providers. Change Healthcare Inc. was incorporated in 2016 and is headquartered in Nashville, Tennessee.

SciPlay Company Profile

SciPlay Corporation develops, markets, and operates a portfolio of social games for mobile and web platforms worldwide. It offers seven games, which include social casino games, such as Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino, and Quick Hit Slots, as well as casual games comprising MONOPOLY Slots, Bingo Showdown, and 88 Fortunes Slots. The company's social casino games include slots-style game play, as well as table games-style game play; and casual games blend slots-style or bingo game play with adventure game features. It also offers titles and content from third-party licensed brands. The company was formerly known as SG Social Games Corporation and changed its name to SciPlay Corporation in March 2019. SciPlay Corporation was founded in 1997 and is based in Las Vegas, Nevada. SciPlay Corporation is a subsidiary of Scientific Games Corporation.

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