R1 RCM (NASDAQ: RCM) and LHC Group (NASDAQ:LHCG) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
This is a breakdown of recent recommendations and price targets for R1 RCM and LHC Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation & Earnings
This table compares R1 RCM and LHC Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|R1 RCM||$592.56 million||0.70||$177.07 million||($0.26)||-15.23|
|LHC Group||$914.82 million||1.24||$36.58 million||$2.32||26.76|
R1 RCM has higher earnings, but lower revenue than LHC Group. R1 RCM is trading at a lower price-to-earnings ratio than LHC Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
47.7% of R1 RCM shares are held by institutional investors. Comparatively, 85.5% of LHC Group shares are held by institutional investors. 62.0% of R1 RCM shares are held by company insiders. Comparatively, 14.8% of LHC Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
R1 RCM has a beta of -0.47, suggesting that its stock price is 147% less volatile than the S&P 500. Comparatively, LHC Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
This table compares R1 RCM and LHC Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
LHC Group beats R1 RCM on 10 of the 13 factors compared between the two stocks.
R1 RCM Company Profile
R1 RCM Inc., formerly Accretive Health, Inc., is a provider of revenue cycle management (RCM) and physician advisory services (PAS) to healthcare providers. The Company is engaged in providing management services of revenue cycle operations for the United States-based hospitals and other medical services providers. Its primary service offering consists of end-to-end RCM, which the Company deploys through a co-managed relationship or an operating partner relationship. The Company’s PAS offering assists hospitals in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes. The Company also provides customers with retrospective appeal management service support for both governmental and commercial payers. Its physicians conduct detailed retrospective reviews of medical records to identify medical necessity for hospital services and the required documentation to support an appeal.
LHC Group Company Profile
LHC Group, Inc. is a holding company. The Company provides post-acute healthcare services to patients through its home nursing agencies, hospice agencies, community-based services agencies and long-term acute care hospitals (LTACHs). The Company operates through four segments: home health services, hospice services, community-based services and facility-based services. Through its home health services segment, the Company offers a range of services, including skilled nursing, medically oriented social services, and physical, occupational and speech therapy. Through its hospice services segment, the Company offers a range of services, including pain and symptom management, and emotional and spiritual support. Its community-based service operations offer a range of services to patients in their home or in a medical facility. The services range from assistance with grooming, medication reminders and meal preparation. It provides facility-based services principally through its LTACHs.
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