Tabula Rasa HealthCare (NASDAQ:TRHC) and Total System Services (NYSE:TSS) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Tabula Rasa HealthCare and Total System Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tabula Rasa HealthCare 0 1 9 0 2.90
Total System Services 0 7 15 0 2.68

Tabula Rasa HealthCare presently has a consensus target price of $83.44, indicating a potential upside of 17.38%. Total System Services has a consensus target price of $96.72, indicating a potential upside of 13.94%. Given Tabula Rasa HealthCare’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tabula Rasa HealthCare is more favorable than Total System Services.

Institutional and Insider Ownership

74.9% of Tabula Rasa HealthCare shares are owned by institutional investors. Comparatively, 77.0% of Total System Services shares are owned by institutional investors. 14.0% of Tabula Rasa HealthCare shares are owned by insiders. Comparatively, 2.4% of Total System Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Tabula Rasa HealthCare has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, Total System Services has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Earnings & Valuation

This table compares Tabula Rasa HealthCare and Total System Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tabula Rasa HealthCare $134.55 million 10.82 $14.29 million ($0.04) -1,777.25
Total System Services $4.93 billion 3.14 $586.18 million $3.22 26.36

Total System Services has higher revenue and earnings than Tabula Rasa HealthCare. Tabula Rasa HealthCare is trading at a lower price-to-earnings ratio than Total System Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tabula Rasa HealthCare and Total System Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tabula Rasa HealthCare -13.49% 7.63% 3.85%
Total System Services 15.93% 30.28% 10.28%

Dividends

Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Tabula Rasa HealthCare does not pay a dividend. Total System Services pays out 16.1% of its earnings in the form of a dividend.

Summary

Total System Services beats Tabula Rasa HealthCare on 10 of the 16 factors compared between the two stocks.

About Tabula Rasa HealthCare

Tabula Rasa HealthCare, Inc. operates as a healthcare technology company in the United States. It offers medication risk management, pharmacy cost management, and medicare risk adjustment services. The company offers its technology-enabled products and services to prescribers, pharmacists, and healthcare organizations for medication risk management and risk adjustment. Tabula Rasa HealthCare, Inc. was founded in 2009 and is headquartered in Moorestown, New Jersey.

About Total System Services

Total System Services, Inc. provides payment processing, merchant, and related payment services to financial and nonfinancial institutions worldwide. The company operates through three segments: Merchant Solutions, Issuer Solutions, and Netspend. It offers general purpose reloadable prepaid and payroll cards, demand deposit accounts, and other financial service solutions to the underbanked and other consumers and businesses. The company also provides third party processing and related services for credit card issuers, merchant acquirers, independent sales organizations, and financial institutions; and issuer processing services, as well as operates as a prepaid program manager. Total System Services, Inc. was founded in 1982 and is headquartered in Columbus, Georgia.

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