Change Healthcare (CHNG) versus Its Peers Critical Contrast

Change Healthcare (NASDAQ: CHNG) is one of 78 publicly-traded companies in the “Data processing & preparation” industry, but how does it compare to its competitors? We will compare Change Healthcare to similar businesses based on the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Institutional & Insider Ownership

52.4% of shares of all “Data processing & preparation” companies are held by institutional investors. 18.9% of shares of all “Data processing & preparation” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Change Healthcare and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare -0.17% 22.03% 11.52%
Change Healthcare Competitors -15.85% -2,206.14% -5.03%

Earnings & Valuation

This table compares Change Healthcare and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Change Healthcare $3.20 billion -$947.60 million 7.53
Change Healthcare Competitors $1.22 billion -$53.42 million -16.36

Change Healthcare has higher revenue, but lower earnings than its competitors. Change Healthcare is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Change Healthcare and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 0 17 1 3.06
Change Healthcare Competitors 784 2924 4065 210 2.46

Change Healthcare presently has a consensus price target of $17.44, suggesting a potential upside of 57.55%. As a group, “Data processing & preparation” companies have a potential upside of 6.89%. Given Change Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Change Healthcare is more favorable than its competitors.

Summary

Change Healthcare beats its competitors on 9 of the 12 factors compared.

Change Healthcare Company Profile

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee.

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