Critical Analysis: Option Care Health (NASDAQ:OPCH) & InfuSystem (NYSE:INFU)

Option Care Health (NASDAQ:OPCH) and InfuSystem (NYSE:INFU) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Option Care Health and InfuSystem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Option Care Health	$5.65 billion	0.84	$207.59 million	$1.33	23.93
InfuSystem	$143.34 million	1.98	$870,000.00	$0.41	34.32

Option Care Health has higher revenue and earnings than InfuSystem. Option Care Health is trading at a lower price-to-earnings ratio than InfuSystem, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Option Care Health has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, InfuSystem has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Option Care Health and InfuSystem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Option Care Health	0	14	2	0	2.12
InfuSystem	0	0	2	0	3.00

Option Care Health currently has a consensus price target of $29.48, suggesting a potential downside of 7.39%. InfuSystem has a consensus price target of $17.50, suggesting a potential upside of 24.38%. Given InfuSystem’s stronger consensus rating and higher probable upside, analysts plainly believe InfuSystem is more favorable than Option Care Health.

Institutional and Insider Ownership

98.0% of Option Care Health shares are owned by institutional investors. Comparatively, 71.1% of InfuSystem shares are owned by institutional investors. 1.7% of Option Care Health shares are owned by insiders. Comparatively, 10.8% of InfuSystem shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Option Care Health and InfuSystem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Option Care Health	3.68%	18.74%	7.25%
InfuSystem	1.12%	2.78%	1.41%

Summary

Option Care Health beats InfuSystem on 7 of the 13 factors compared between the two stocks.

About Option Care Health

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.

About InfuSystem

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada. The company operates in two segments, Patient Services and Device Solutions. It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states. The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other healthcare site settings comprising hospitals, home care and home infusion providers, skilled nursing and acute care facilities, pain centers, and others. In addition, it offers local and field-based customer support, as well as operates pump service and repair centers. The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.