NantHealth (NASDAQ:NH) versus Inovalon (NASDAQ:INOV) Critical Analysis

Inovalon (NASDAQ:INOV) and NantHealth (NASDAQ:NH) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Inovalon and NantHealth’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inovalon $642.41 million 5.06 $7.78 million $0.41 51.05
NantHealth $95.96 million 4.25 -$62.76 million ($0.57) -6.44

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

Risk & Volatility

Inovalon has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares Inovalon and NantHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inovalon 0.87% 9.07% 3.18%
NantHealth -60.94% N/A -32.31%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Inovalon and NantHealth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inovalon 1 3 5 0 2.44
NantHealth 0 0 0 0 N/A

Inovalon currently has a consensus price target of $23.56, suggesting a potential upside of 12.54%. Given Inovalon’s higher probable upside, equities research analysts clearly believe Inovalon is more favorable than NantHealth.

Insider and Institutional Ownership

29.2% of Inovalon shares are owned by institutional investors. Comparatively, 4.8% of NantHealth shares are owned by institutional investors. 49.6% of Inovalon shares are owned by insiders. Comparatively, 59.6% of NantHealth shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Inovalon beats NantHealth on 11 of the 13 factors compared between the two stocks.

Inovalon Company Profile

Inovalon Holdings, Inc. provides cloud-based platforms for data-driven healthcare. It operates Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 988,000 physicians; 522,000 clinical facilities; and approximately 314 million individuals and 53 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.

NantHealth Company Profile

NantHealth, Inc., together with its subsidiaries, operates as a healthcare technology company converging science and technology in the United States, the United Kingdom, Singapore, and Canada. It provides NantHealth solutions, including molecular profiling solutions, software-as-a-service platforms, and connected care medical device interoperability solutions to enable value-based care and evidence-based clinical practice. The company's products include GPS Cancer, a molecular profile that integrates whole genome/exome sequencing of tumor and normal germline samples, as well as whole transcriptome sequencing; GPS Cancer Report, a GPS cancer solution; Liquid GPS, a blood-based molecular laboratory test that provides a tool for noninvasive tumor profiling and quantitative monitoring of treatment response; and Eviti, a decision support solution that provides evidence-based clinical decision support. It also offers web-based and mobile software solutions, such as Device Connectivity Suite, a device connectivity and near real-time biometric software and hardware suite to aggregate data from in-hospital and remote medical devices. In addition, NantHealth, Inc. provides NaviNet Open, a payer-provider collaboration platform comprising plan central, eligibility and benefit, claims status inquiry, claims management, referral, authorization, and document exchange, as well as AllPayer Access services; and systems infrastructure solutions, which include cloud computing, storage, and transport infrastructure. The company was formerly known as Nant Health, LLC and changed its name to NantHealth, Inc. in June 2016. The company was founded in 2010 and is headquartered in Culver City, California. NantHealth, Inc. is as a subsidiary of NantWorks, LLC.

Receive News & Ratings for Inovalon Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Inovalon and related companies with MarketBeat.com's FREE daily email newsletter.