Financial Review: Acadia Healthcare (ACHC) vs. HMS Holdings Corp (NASDAQ:HMSY)

HMS Holdings Corp (NASDAQ: HMSY) and Acadia Healthcare (NASDAQ:ACHC) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Profitability

This table compares HMS Holdings Corp and Acadia Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HMS Holdings Corp 4.94% 7.93% 4.93%
Acadia Healthcare 6.07% 8.57% 3.22%

Analyst Recommendations

This is a summary of current ratings and price targets for HMS Holdings Corp and Acadia Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HMS Holdings Corp 0 2 4 1 2.86
Acadia Healthcare 0 6 8 0 2.57

HMS Holdings Corp currently has a consensus price target of $21.21, indicating a potential upside of 35.99%. Acadia Healthcare has a consensus price target of $43.92, indicating a potential upside of 55.57%. Given Acadia Healthcare’s higher possible upside, analysts clearly believe Acadia Healthcare is more favorable than HMS Holdings Corp.

Valuation & Earnings

This table compares HMS Holdings Corp and Acadia Healthcare’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
HMS Holdings Corp $496.01 million 2.64 $37.63 million $0.29 53.79
Acadia Healthcare $2.85 billion 0.87 $6.14 million $1.97 14.33

HMS Holdings Corp has higher revenue, but lower earnings than Acadia Healthcare. Acadia Healthcare is trading at a lower price-to-earnings ratio than HMS Holdings Corp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.5% of HMS Holdings Corp shares are held by institutional investors. 3.2% of HMS Holdings Corp shares are held by company insiders. Comparatively, 11.1% of Acadia Healthcare 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.

Volatility & Risk

HMS Holdings Corp has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Summary

HMS Holdings Corp beats Acadia Healthcare on 8 of the 15 factors compared between the two stocks.

HMS Holdings Corp Company Profile

HMS Holdings Corp. is a holding company. The Company, through its subsidiaries, operates in the United States healthcare insurance benefit cost containment marketplace. It provides coordination of benefits services to government, and private healthcare payers and sponsors. Its payment integrity services ensure that healthcare claims billed are accurate and appropriate. It offers services to state Medicaid agencies, government health agencies and health plans, including Medicaid managed care, Medicare Advantage and group and individual health lines of business; government and private employers; and other healthcare payers and sponsors, including child support agencies. It serves approximately 45 state Medicaid programs and the District of Columbia, and government health agencies, including Centers for Medicare & Medicaid Services (CMS) and the Veterans Health Administration (VHA). It also provides services to approximately 250 health plans and supports their multiple lines of business.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.

Receive News & Ratings for HMS Holdings Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for HMS Holdings Corp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply