Analyzing Premier (PINC) and Rainmaker Systems (VCTL)

Premier (NASDAQ:PINC) and Rainmaker Systems (OTCMKTS:VCTL) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Premier and Rainmaker Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 0 8 8 0 2.50
Rainmaker Systems 0 0 0 0 N/A

Premier presently has a consensus price target of $40.96, suggesting a potential downside of 0.99%. Given Premier’s higher probable upside, research analysts plainly believe Premier is more favorable than Rainmaker Systems.

Risk & Volatility

Premier has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Rainmaker Systems has a beta of -1.59, meaning that its stock price is 259% less volatile than the S&P 500.

Insider and Institutional Ownership

42.3% of Premier shares are held by institutional investors. Comparatively, 0.4% of Rainmaker Systems shares are held by institutional investors. 18.3% of Premier shares are held by insiders. Comparatively, 7.6% of Rainmaker Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Premier and Rainmaker Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Premier $1.66 billion 3.31 $33.30 million $0.70 59.10
Rainmaker Systems N/A N/A N/A N/A N/A

Premier has higher revenue and earnings than Rainmaker Systems.

Profitability

This table compares Premier and Rainmaker Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Premier 32.31% -27.57% 13.98%
Rainmaker Systems N/A N/A N/A

Summary

Premier beats Rainmaker Systems on 8 of the 9 factors compared between the two stocks.

About Premier

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. The company operates through two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and document shredding services and software-as-a-service informatics products. This segment also engages in the Integrated Pharmacy business, which provides traditional pharmacy dispensing and integrated pharmacy services; direct sourcing business; and provision of ASCEND Collaborative service for members to receive group purchasing programs, tiers, and prices, as well as managed services. The Performance Services segment offers PremierConnect for members to address existing cost and quality imperatives, help them manage a value-based care reimbursement model and support their regulatory reporting framework; performance improvement collaborative; and consulting and insurance services. This segment's various PremierConnect domains comprise PremierConnect Quality & Regulatory domain for identifying and targeting quality improvement areas; PremierConnect Clinical Surveillance & Safety domain to enhance patient safety; PremierConnect Supply Chain & ERP domain to deals with supply chain; PremierConnect Operations domain, which optimizes labor management with integrated financial reporting and budgeting; and PremierConnect Enterprise Analytics, which integrates members' custom data into a hosted and integrated data warehouse and analytics platform. The company was incorporated in 2013 and is headquartered in Charlotte, North Carolina.

About Rainmaker Systems

Rainmaker Systems, Inc. provides B2B small and medium-sized business sales and service solutions. It develops Rainmaker Revenue Delivery Platform, an integrated solution that combines specialized sales and marketing services coupled with its proprietary, renewals software, and business analytics. The company's services include marketing strategy development, personalized renewals or subscription e-commerce and microsite creation and hosting, inbound and outbound e-mail, direct mail, chat, and global call center services. It also offers ViewCentral SaaS platform that provides an end-to-end solution for the management and delivery of training and certification programs for corporations. The company markets its products and services through a direct sales force to enterprises in hardware, software, software as a service, and telecommunications industries. Rainmaker Systems, Inc. was founded in 1991 and is headquartered in Campbell, California.

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