MultiPlan (NYSE:MPLN – Get Free Report) and Research Solutions (NASDAQ:RSSS – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Profitability
This table compares MultiPlan and Research Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MultiPlan | -9.54% | -8.31% | -2.05% |
| Research Solutions | -1.05% | -4.96% | -1.63% |
Analyst Ratings
This is a summary of current recommendations for MultiPlan and Research Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MultiPlan | 0 | 0 | 0 | 0 | N/A |
| Research Solutions | 0 | 0 | 2 | 0 | 3.00 |
Valuation and Earnings
This table compares MultiPlan and Research Solutions’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MultiPlan | $961.52 million | 0.49 | -$91.70 million | ($0.15) | -4.86 |
| Research Solutions | $37.70 million | 2.65 | $570,000.00 | ($0.02) | -153.00 |
Research Solutions has lower revenue, but higher earnings than MultiPlan. Research Solutions is trading at a lower price-to-earnings ratio than MultiPlan, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
MultiPlan has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Research Solutions has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
Institutional & Insider Ownership
87.2% of MultiPlan shares are owned by institutional investors. Comparatively, 33.6% of Research Solutions shares are owned by institutional investors. 8.2% of MultiPlan shares are owned by company insiders. Comparatively, 26.5% of Research Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Research Solutions beats MultiPlan on 8 of the 11 factors compared between the two stocks.
About MultiPlan
MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.
About Research Solutions
Research Solutions, Inc., through its subsidiaries, provides cloud-based software-as-a-service research platform. The company is also involved in the transactional sale of published scientific, technical, and medical (STM) content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to accelerate their research and development activities with access and management STM articles used throughout the intellectual property development lifecycle. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.
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