athenahealth (NASDAQ: ATHN) and NantHealth (NYSE:NH) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares athenahealth and NantHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
athenahealth 2.80% 6.91% 3.80%
NantHealth -267.11% -83.97% -46.64%

Analyst Ratings

This is a breakdown of current recommendations for athenahealth and NantHealth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 2 10 12 0 2.42
NantHealth 0 0 4 0 3.00

athenahealth presently has a consensus target price of $147.86, indicating a potential upside of 11.67%. NantHealth has a consensus target price of $9.25, indicating a potential upside of 108.80%. Given NantHealth’s stronger consensus rating and higher probable upside, analysts plainly believe NantHealth is more favorable than athenahealth.

Valuation and Earnings

This table compares athenahealth and NantHealth’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
athenahealth $1.15 billion 4.60 $127.70 million $0.80 165.50
NantHealth $98.18 million 5.50 -$116.13 million N/A N/A

athenahealth has higher revenue and earnings than NantHealth.

Summary

athenahealth beats NantHealth on 6 of the 9 factors compared between the two stocks.

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.

NantHealth Company Profile

NantHealth, Inc. is a healthcare cloud-based information technology (IT) company. The Company is engaged in converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. The Company offers the Genomic Proteomic Spectrometry (GPS) Cancer test, a molecular test and decision support solution that measures the proteins present in the patient’s tumor tissue, combined with whole genomic and transcriptomic sequencing of tumor and normal samples. The Company also offers Nant Operating System (NantOS) and NantOS applications to healthcare providers and payors, self-insured employers and biopharmaceutical companies. It offers CLINICS, an integrated solution that includes GPS Cancer, NantOS and the NantOS applications. The CLINICS solution includes System Infrastructure, Knowledge Platform, Provider Platform and Payor Platform.

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