Critical Review: BioScrip (NASDAQ:BIOS) and Its Competitors

BioScrip (NASDAQ: BIOS) is one of 15 public companies in the “Hospitals, Clinics & Primary Care Services” industry, but how does it compare to its competitors? We will compare BioScrip to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.

Profitability

This table compares BioScrip and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BioScrip -8.42% N/A -8.01%
BioScrip Competitors 3.52% 3.52% 4.31%

Earnings & Valuation

This table compares BioScrip and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BioScrip $935.59 million -$41.50 million -3.74
BioScrip Competitors $1.06 billion -$22.56 million 749.26

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

Institutional and Insider Ownership

84.7% of BioScrip shares are owned by institutional investors. Comparatively, 69.6% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by institutional investors. 0.8% of BioScrip shares are owned by company insiders. Comparatively, 10.4% of shares of all “Hospitals, Clinics & Primary Care Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

BioScrip has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, BioScrip’s competitors have a beta of 1.47, meaning that their average share price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for BioScrip and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BioScrip 0 0 4 0 3.00
BioScrip Competitors 57 326 509 9 2.52

BioScrip currently has a consensus target price of $3.75, indicating a potential upside of 47.64%. As a group, “Hospitals, Clinics & Primary Care Services” companies have a potential upside of 21.40%. Given BioScrip’s stronger consensus rating and higher probable upside, equities analysts clearly believe BioScrip is more favorable than its competitors.

Summary

BioScrip competitors beat BioScrip on 8 of the 12 factors compared.

BioScrip Company Profile

BioScrip, Inc. is engaged in providing infusion solutions. The Company partners with physicians, hospital systems, skilled nursing facilities, healthcare payors and pharmaceutical manufacturers to provide patients access to post-acute care services. The Company operates through Infusion Services segment. The Company operates through approximately 70 service locations in over 30 states. The Company offers home infusion services to provide clinical management services and the delivery of prescription medications. The Company provides services in coordination with, and under the direction of, the patient’s physician. The Company’s multidisciplinary team of clinicians, including pharmacists, nurses, dietitians and respiratory therapists, work with the physician to develop a plan of care suited to the patient’s specific needs. Its platform provides service capabilities to deliver clinical management services that offer patients a community-based and home-based care environment.

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