Reviewing MultiPlan (MPLN) & Its Competitors

MultiPlan (NYSE: MPLN) is one of 204 public companies in the “Business services, not elsewhere classified” industry, but how does it compare to its peers? We will compare MultiPlan to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares MultiPlan and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MultiPlan $937.76 million -$520.56 million -7.96
MultiPlan Competitors $2.85 billion $333.60 million -186.74

MultiPlan’s peers have higher revenue and earnings than MultiPlan. MultiPlan is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for MultiPlan and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MultiPlan 0 1 3 0 2.75
MultiPlan Competitors 1119 5729 10672 309 2.57

MultiPlan presently has a consensus price target of $9.25, suggesting a potential upside of 3.70%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 14.73%. Given MultiPlan’s peers higher probable upside, analysts clearly believe MultiPlan has less favorable growth aspects than its peers.

Institutional & Insider Ownership

75.6% of MultiPlan shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 17.7% of MultiPlan shares are owned by insiders. Comparatively, 15.4% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares MultiPlan and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MultiPlan N/A -9.59% -3.59%
MultiPlan Competitors -146.38% -11.56% 1.12%

Summary

MultiPlan beats its peers on 7 of the 12 factors compared.

About MultiPlan

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services, which reduce medical costs through data-driven algorithms that detect claims over-charges and recommend or negotiate reimbursement; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment integrity services, which reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim. It also provides health benefit plans, which features reference-based pricing and tools to engage health plan members and providers to make the use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third party administrators, insurance bill review companies, Taft-Hartley plans, and other entities that pay medical bills in the commercial healthcare, government, workers' compensation, and auto medical markets. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

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