Head to Head Analysis: athenahealth (NASDAQ:ATHN) and Its Rivals

athenahealth (NASDAQ: ATHN) is one of 20 public companies in the “Medical Software & Technology Services” industry, but how does it contrast to its rivals? We will compare athenahealth to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares athenahealth and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
athenahealth $1.08 billion $21.00 million 161.74
athenahealth Competitors $422.43 million -$16.79 million 394.11

athenahealth has higher revenue and earnings than its rivals. athenahealth is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for athenahealth and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
athenahealth 1 13 10 0 2.38
athenahealth Competitors 84 432 816 13 2.56

athenahealth presently has a consensus price target of $141.77, indicating a potential upside of 13.84%. As a group, “Medical Software & Technology Services” companies have a potential upside of 21.34%. Given athenahealth’s rivals stronger consensus rating and higher possible upside, analysts clearly believe athenahealth has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

60.4% of shares of all “Medical Software & Technology Services” companies are owned by institutional investors. 3.2% of athenahealth shares are owned by insiders. Comparatively, 26.7% of shares of all “Medical Software & Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

athenahealth has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, athenahealth’s rivals have a beta of 1.42, meaning that their average stock price is 42% more volatile than the S&P 500.

Profitability

This table compares athenahealth and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
athenahealth 2.65% 6.78% 3.83%
athenahealth Competitors -17.29% -11.01% -1.66%

Summary

athenahealth rivals beat athenahealth on 7 of the 13 factors compared.

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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