Comparing Generation Hemp (OTCMKTS:GENH) & MultiPlan (NYSE:MPLN)

Generation Hemp (OTCMKTS:GENH) and MultiPlan (NYSE:MPLN) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Profitability

This table compares Generation Hemp and MultiPlan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Hemp	-674.14%	-15,656.36%	-195.12%
MultiPlan	-163.30%	-12.14%	-1.84%

Valuation & Earnings

This table compares Generation Hemp and MultiPlan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Hemp	$680,000.00	36.83	-$9.82 million	N/A	N/A
MultiPlan	$930.62 million	1.07	-$91.70 million	($101.54)	-0.61

Generation Hemp has higher earnings, but lower revenue than MultiPlan.

Risk & Volatility

Generation Hemp has a beta of -0.38, suggesting that its share price is 138% less volatile than the S&P 500. Comparatively, MultiPlan has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Insider & Institutional Ownership

87.2% of MultiPlan shares are owned by institutional investors. 60.9% of Generation Hemp shares are owned by insiders. Comparatively, 8.0% of MultiPlan shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Generation Hemp and MultiPlan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Hemp	0	0	0	0	0.00
MultiPlan	0	1	0	0	2.00

MultiPlan has a consensus target price of $12.50, suggesting a potential downside of 79.72%. Given MultiPlan’s stronger consensus rating and higher possible upside, analysts clearly believe MultiPlan is more favorable than Generation Hemp.

Summary

MultiPlan beats Generation Hemp on 8 of the 11 factors compared between the two stocks.

About Generation Hemp

Evergreen Sustainable Enterprises, Inc. operates as a hemp company. It engages in leases warehouse space to hemp seed growers. The company was founded on July 28, 2008 and is headquartered in Dallas, TX.

About MultiPlan

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.