Streamline Health Solutions (STRM) & Air Methods (AIRM) Financial Review

Streamline Health Solutions (NASDAQ: STRM) and Air Methods (NASDAQ:AIRM) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Insider & Institutional Ownership

35.9% of Streamline Health Solutions shares are held by institutional investors. 26.1% of Streamline Health Solutions shares are held by insiders. Comparatively, 9.0% of Air Methods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Streamline Health Solutions and Air Methods, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Streamline Health Solutions 0 0 0 0 N/A
Air Methods 0 3 1 0 2.25

Air Methods has a consensus target price of $43.00, indicating a potential upside of 0.12%. Given Air Methods’ higher possible upside, analysts clearly believe Air Methods is more favorable than Streamline Health Solutions.

Profitability

This table compares Streamline Health Solutions and Air Methods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Streamline Health Solutions -16.88% -40.97% -10.96%
Air Methods 6.67% 14.18% 4.43%

Valuation and Earnings

This table compares Streamline Health Solutions and Air Methods’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Streamline Health Solutions $27.06 million 1.18 -$5.16 million ($0.21) -7.62
Air Methods N/A N/A N/A $2.59 16.58

Air Methods has lower revenue, but higher earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Air Methods, indicating that it is currently the more affordable of the two stocks.

Summary

Air Methods beats Streamline Health Solutions on 7 of the 10 factors compared between the two stocks.

Streamline Health Solutions Company Profile

Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.

Air Methods Company Profile

Air Methods Corporation is engaged in providing air medical emergency transport services and systems throughout the United States. The Company’s segments include Air Medical Services (AMS), Tourism and United Rotorcraft (UR) Division. As of December 31, 2016, its AMS Division provided air medical transportation services in 41 states to the general population as an independent service (also called community-based services) and to hospitals or other institutions under exclusive operating agreements (also called hospital-based services). It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to skilled trauma centers or tertiary care centers. As of December 31, 2016, its Air Medical Services Division operated 394 helicopters and 31 fixed wing aircrafts under both Instrument Flight Rules (IFR) and Visual Flight Rules (VFR). As of December 31, 2016, its Tourism Division operated 63 helicopters and two fixed wing aircrafts.

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