Contrasting Allscripts Healthcare Solutions (MDRX) & HealthEquity (HQY)

Allscripts Healthcare Solutions (NASDAQ: MDRX) and HealthEquity (NASDAQ:HQY) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Valuation and Earnings

This table compares Allscripts Healthcare Solutions and HealthEquity’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Allscripts Healthcare Solutions $1.66 billion 1.47 $160.09 million ($1.06) -12.75
HealthEquity $189.78 million 14.27 $57.61 million $0.67 67.40

Allscripts Healthcare Solutions has higher revenue and earnings than HealthEquity. Allscripts Healthcare Solutions is trading at a lower price-to-earnings ratio than HealthEquity, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Allscripts Healthcare Solutions and HealthEquity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 6 10 0 2.53
HealthEquity 0 0 9 0 3.00

Allscripts Healthcare Solutions presently has a consensus target price of $14.67, indicating a potential upside of 8.56%. HealthEquity has a consensus target price of $54.17, indicating a potential upside of 19.94%. Given HealthEquity’s stronger consensus rating and higher probable upside, analysts plainly believe HealthEquity is more favorable than Allscripts Healthcare Solutions.

Institutional & Insider Ownership

91.9% of HealthEquity shares are held by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are held by company insiders. Comparatively, 19.0% of HealthEquity shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Allscripts Healthcare Solutions has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, HealthEquity has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares Allscripts Healthcare Solutions and HealthEquity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions -11.54% 5.97% 1.96%
HealthEquity 20.27% 13.93% 13.27%

Summary

HealthEquity beats Allscripts Healthcare Solutions on 11 of the 14 factors compared between the two stocks.

Allscripts Healthcare Solutions Company Profile

Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.

HealthEquity Company Profile

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

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