HMS (NASDAQ:HMSY) and InterCloud Systems (OTCMKTS:ICLD) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
96.8% of HMS shares are owned by institutional investors. 2.9% of HMS shares are owned by company insiders. Comparatively, 0.5% of InterCloud Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares HMS and InterCloud Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares HMS and InterCloud Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HMS||$598.29 million||5.33||$54.99 million||$0.84||43.61|
|InterCloud Systems||$34.52 million||0.01||-$44.33 million||N/A||N/A|
HMS has higher revenue and earnings than InterCloud Systems.
Risk & Volatility
HMS has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, InterCloud Systems has a beta of 2.84, meaning that its share price is 184% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for HMS and InterCloud Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HMS presently has a consensus price target of $42.98, suggesting a potential upside of 17.35%. Given HMS’s higher possible upside, research analysts clearly believe HMS is more favorable than InterCloud Systems.
HMS beats InterCloud Systems on 10 of the 11 factors compared between the two stocks.
HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. The company offers coordination of benefits services to government and commercial healthcare payers to ensure that the correct party pays the claim; and population management solutions that provide risk-bearing organizations with intelligence across their member populations to identify risks, and enhance patient engagement and outcomes, as well as payment integrity, care management and consumer engagement, and analytical solutions. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance program, and other healthcare payers, as well as a subcontractor. The company was founded in 1974 and is headquartered in Irving, Texas.
About InterCloud Systems
InterCloud Systems, Inc. provides networking orchestration and automation for software-defined networking (SDN) and network function virtualization environments to telecommunications service provider and corporate enterprise markets in the United States and internationally. It operates through two segments, Applications and Infrastructure and Professional Services. The Applications and Infrastructure segment provides applications and services, including SDN training, SDN software development and integration, and vertical network function validation; and cabling and other field installations, as well as designs, engineers, installs, and maintains various types of Wi-Fi and DAS networks to enterprise customers. The Professional Services segment engages in the design and deployment of SDN and software-defined wide area networking solutions for enterprise and carrier accounts. The company is based in Shrewsbury, New Jersey.
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