Critical Review: IQVIA (IQV) and National Research (NRCIA)

IQVIA (NYSE: IQV) and National Research (NASDAQ:NRCIA) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares IQVIA and National Research’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IQVIA $9.74 billion 2.08 $1.31 billion $4.36 22.44
National Research $117.56 million 6.99 $22.94 million $0.58 57.84

IQVIA has higher revenue and earnings than National Research. IQVIA is trading at a lower price-to-earnings ratio than National Research, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.4% of IQVIA shares are held by institutional investors. Comparatively, 33.6% of National Research shares are held by institutional investors. 6.0% of IQVIA shares are held by company insiders. Comparatively, 5.7% of National Research shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares IQVIA and National Research’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IQVIA 13.07% 13.35% 4.75%
National Research 19.52% 27.45% 19.09%

Analyst Recommendations

This is a breakdown of recent ratings for IQVIA and National Research, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IQVIA 0 6 11 0 2.65
National Research 0 0 0 0 N/A

IQVIA currently has a consensus target price of $110.38, indicating a potential upside of 12.83%. Given IQVIA’s higher probable upside, analysts clearly believe IQVIA is more favorable than National Research.

Dividends

National Research pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. IQVIA does not pay a dividend. National Research pays out 69.0% of its earnings in the form of a dividend.

Volatility & Risk

IQVIA has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, National Research has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Summary

IQVIA beats National Research on 8 of the 15 factors compared between the two stocks.

IQVIA Company Profile

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Commercial Solutions, Research & Development Solutions, and Integrated Engagement Services. The Commercial Solutions segment offers a range of cloud-based applications and related implementation, real-world insights, and reference information services; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order to life science companies, and investment and financial sectors that deal with life science companies; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level to pharmaceutical sales organizations. The Research & Development Solutions segment offers biopharmaceutical development services comprising project management and clinical monitoring, clinical trial support, and strategic planning and design services, as well as clinical trial, genomic, and bioanalytical laboratory services. The Integrated Engagement Services segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. The company serves pharmaceutical, biotechnology, device and diagnostic, and healthcare companies. IQVIA Holdings Inc. has a strategic alliance with MuleSoft, Inc. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was founded in 1982 and is headquartered in Durham, North Carolina.

National Research Company Profile

National Research Corporation provides analytics and insights that facilitate measurement and enhancement of the patient and employee experience in the United States and Canada. Its portfolio of subscription-based solutions provide actionable information and analysis to healthcare organizations and payers across a range of mission-critical, constituent-related elements, including patient experience, satisfaction, community population health risks, workforce engagement, community perceptions, and physician engagement. The company offers market insights solutions that allow the tracking of awareness, perception, and consistency of healthcare brands; assessment of competitive differentiators; and enhanced segmentation tools to evaluate needs, wants, and behaviors of communities through real-time competitive assessments and enhanced segmentation tools. It also provides experience solutions, such as patient and resident experience, workforce engagement, health risk assessments, transitions, and improvement tools. The company offers transitions solutions, which enable organizations to identify and manage high-risk patients to reduce readmissions, increase patient satisfaction and support safe care transitions; and risk assessment solutions that enable clients to segment populations and manage care for those who are most at risk, engage individuals, enhance preventative care, and manage wellness programs. It provides transparency solutions that allow healthcare organizations to share picture of their organization and ensure content informs in consumer decision-making; and governance solutions for not-for-profit hospital and health system boards of directors, executives, and physician leadership. The company serves integrated health systems and post-acute providers, such as home health, long term care, hospice, and payer organizations. The company was founded in 1981 and is headquartered in Lincoln, Nebraska.

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