Head-To-Head Analysis: Simulations Plus (NASDAQ:SLP) and athenahealth (ATHN)
Simulations Plus (NASDAQ: SLP) and athenahealth (NASDAQ:ATHN) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitabiliy and institutional ownership.
This table compares Simulations Plus and athenahealth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Simulations Plus has a beta of -0.71, meaning that its stock price is 171% less volatile than the S&P 500. Comparatively, athenahealth has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.
Valuation and Earnings
This table compares Simulations Plus and athenahealth’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Simulations Plus||$21.83 million||11.53||$9.15 million||$0.32||45.63|
|athenahealth||$1.15 billion||4.91||$127.70 million||$0.80||176.81|
athenahealth has higher revenue and earnings than Simulations Plus. Simulations Plus is trading at a lower price-to-earnings ratio than athenahealth, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
28.5% of Simulations Plus shares are owned by institutional investors. 36.9% of Simulations Plus shares are owned by insiders. Comparatively, 3.2% of athenahealth shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current recommendations for Simulations Plus and athenahealth, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
athenahealth has a consensus price target of $147.38, suggesting a potential upside of 4.19%. Given athenahealth’s higher possible upside, analysts clearly believe athenahealth is more favorable than Simulations Plus.
Simulations Plus pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. athenahealth does not pay a dividend. Simulations Plus pays out 62.5% of its earnings in the form of a dividend.
athenahealth beats Simulations Plus on 8 of the 15 factors compared between the two stocks.
Simulations Plus Company Profile
Simulations Plus, Inc. (Simulations Plus) develops and produces software for use in pharmaceutical research and for education, and provides consulting and contract research services to the pharmaceutical industry. The Company offers five software products for pharmaceutical research. ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Predictor is a computer program that takes molecular structures as inputs and predicts over 140 different properties for them at the rate of about 200,000 compounds per hour. MedChem Designer includes a small set of ADMET Predictor property predictions, allowing the chemist to modify molecular structures. MedChem Studio is a tool for medicinal and computational chemists for both data mining and for designing new drug-like molecules. DDDPlus simulates in-vitro laboratory experiments used to measure the rate of dissolution of the drug. GastroPlus simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs.
athenahealth Company Profile
athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.
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