Streamline Health Solutions (NASDAQ: STRM) and Community Health Systems (NYSE:CYH) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
This table compares Streamline Health Solutions and Community Health Systems’ 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%|
|Community Health Systems||-3.97%||-3.10%||-0.22%|
Streamline Health Solutions has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Community Health Systems has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Earnings & Valuation
This table compares Streamline Health Solutions and Community Health Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Streamline Health Solutions||$27.06 million||1.26||-$5.16 million||($0.21)||-8.10|
|Community Health Systems||$18.44 billion||0.03||-$1.72 billion||($5.82)||-0.71|
Streamline Health Solutions has higher earnings, but lower revenue than Community Health Systems. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Community Health Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
35.9% of Streamline Health Solutions shares are held by institutional investors. Comparatively, 94.7% of Community Health Systems shares are held by institutional investors. 26.1% of Streamline Health Solutions shares are held by insiders. Comparatively, 4.7% of Community Health Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Streamline Health Solutions and Community Health Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Streamline Health Solutions||0||0||0||0||N/A|
|Community Health Systems||5||10||0||0||1.67|
Community Health Systems has a consensus target price of $5.58, indicating a potential upside of 35.69%. Given Community Health Systems’ higher possible upside, analysts clearly believe Community Health Systems is more favorable than Streamline Health Solutions.
Community Health Systems beats Streamline Health Solutions on 8 of the 12 factors compared between the two stocks.
About Streamline Health Solutions
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.
About Community Health Systems
Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.
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