Air Methods (AIRM) and Diplomat Pharmacy (DPLO) Critical Contrast

Air Methods (NASDAQ: AIRM) and Diplomat Pharmacy (NYSE:DPLO) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Air Methods and Diplomat Pharmacy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Methods 0 3 1 0 2.25
Diplomat Pharmacy 0 4 4 0 2.50

Air Methods currently has a consensus price target of $43.00, suggesting a potential upside of Infinity. Diplomat Pharmacy has a consensus price target of $20.56, suggesting a potential downside of 18.47%. Given Air Methods’ higher probable upside, research analysts plainly believe Air Methods is more favorable than Diplomat Pharmacy.

Earnings & Valuation

This table compares Air Methods and Diplomat Pharmacy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Methods N/A N/A N/A $2.59 N/A
Diplomat Pharmacy $4.41 billion 0.39 $28.27 million $0.10 252.20

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

Profitability

This table compares Air Methods and Diplomat Pharmacy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Methods 6.67% 14.18% 4.43%
Diplomat Pharmacy 0.18% 8.30% 4.70%

Institutional & Insider Ownership

72.2% of Diplomat Pharmacy shares are owned by institutional investors. 9.0% of Air Methods shares are owned by company insiders. Comparatively, 30.2% of Diplomat Pharmacy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Diplomat Pharmacy beats Air Methods on 7 of the 11 factors compared between the two stocks.

About Air Methods

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.

About Diplomat Pharmacy

Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.

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