Reviewing HMS (NASDAQ:HMSY) and ITEX (NASDAQ:ITEX)
ITEX (OTCMKTS:ITEX) and HMS (NASDAQ:HMSY) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Institutional and Insider Ownership
96.5% of HMS shares are held by institutional investors. 32.0% of ITEX shares are held by company insiders. Comparatively, 2.7% of HMS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
ITEX has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, HMS has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for ITEX and HMS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HMS has a consensus target price of $36.00, indicating a potential upside of 40.90%. Given HMS’s higher probable upside, analysts clearly believe HMS is more favorable than ITEX.
This table compares ITEX and HMS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares ITEX and HMS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HMS||$626.40 million||3.61||$87.22 million||$1.15||22.22|
HMS has higher revenue and earnings than ITEX.
HMS beats ITEX on 8 of the 9 factors compared between the two stocks.
ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company's marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.
HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. The company offers coordination of benefits services to government and commercial healthcare payers to ensure that the correct party pays the claim; and population management solutions that provide risk-bearing organizations with intelligence across their member populations to identify risks, and enhance patient engagement and outcomes, as well as payment integrity, care management and consumer engagement, and analytical solutions. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance program, and other healthcare payers, as well as a subcontractor. The company was founded in 1974 and is headquartered in Irving, Texas.
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