BioScrip (NASDAQ: BIOS) and Premier (NASDAQ:PINC) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
BioScrip has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Premier has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.
Insider & Institutional Ownership
84.8% of BioScrip shares are held by institutional investors. Comparatively, 37.8% of Premier shares are held by institutional investors. 0.8% of BioScrip shares are held by company insiders. Comparatively, 17.1% of Premier shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares BioScrip and Premier’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BioScrip||$900.58 million||0.39||$25.07 million||($0.68)||-4.10|
|Premier||$1.45 billion||1.24||$440.72 million||($6.33)||-5.35|
Premier has higher revenue and earnings than BioScrip. Premier is trading at a lower price-to-earnings ratio than BioScrip, indicating that it is currently the more affordable of the two stocks.
This table compares BioScrip and Premier’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for BioScrip and Premier, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BioScrip presently has a consensus price target of $3.94, suggesting a potential upside of 41.13%. Premier has a consensus price target of $40.00, suggesting a potential upside of 18.13%. Given BioScrip’s stronger consensus rating and higher possible upside, analysts clearly believe BioScrip is more favorable than Premier.
Premier beats BioScrip on 8 of the 13 factors compared between the two stocks.
BioScrip, Inc. is engaged in providing infusion solutions. The Company partners with physicians, hospital systems, skilled nursing facilities, healthcare payors and pharmaceutical manufacturers to provide patients access to post-acute care services. The Company operates through Infusion Services segment. The Company operates through approximately 70 service locations in over 30 states. The Company offers home infusion services to provide clinical management services and the delivery of prescription medications. The Company provides services in coordination with, and under the direction of, the patient’s physician. The Company’s multidisciplinary team of clinicians, including pharmacists, nurses, dietitians and respiratory therapists, work with the physician to develop a plan of care suited to the patient’s specific needs. Its platform provides service capabilities to deliver clinical management services that offer patients a community-based and home-based care environment.
Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,750 United States hospitals and more than 130,000 other provider organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.
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