Streamline Health Solutions (NASDAQ: STRM) and Surgical Care Affiliates (NASDAQ:SCAI) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Risk & Volatility
Streamline Health Solutions has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Surgical Care Affiliates has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Earnings & Valuation
This table compares Streamline Health Solutions and Surgical Care Affiliates’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Streamline Health Solutions||$24.86 million||1.31||-$3.83 million||($0.31)||-5.29|
|Surgical Care Affiliates||N/A||N/A||N/A||$0.55||101.58|
Surgical Care Affiliates has higher revenue, but lower earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Surgical Care Affiliates, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Streamline Health Solutions and Surgical Care Affiliates, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Streamline Health Solutions||0||0||0||0||N/A|
|Surgical Care Affiliates||0||2||0||0||2.00|
Surgical Care Affiliates has a consensus price target of $50.00, suggesting a potential downside of 10.51%. Given Surgical Care Affiliates’ higher possible upside, analysts plainly believe Surgical Care Affiliates is more favorable than Streamline Health Solutions.
Institutional & Insider Ownership
37.9% of Streamline Health Solutions shares are held by institutional investors. 26.1% of Streamline Health Solutions shares are held by insiders. Comparatively, 3.3% of Surgical Care Affiliates shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Streamline Health Solutions and Surgical Care Affiliates’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Streamline Health Solutions||-24.50%||-56.04%||-15.49%|
|Surgical Care Affiliates||21.52%||13.07%||12.83%|
Surgical Care Affiliates beats Streamline Health Solutions on 6 of the 9 factors compared between the two stocks.
About Streamline Health Solutions
Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.
About Surgical Care Affiliates
Surgical Care Affiliates, Inc. is a provider of solutions to physicians, health plans and health systems to optimize surgical care. The Company offers tools and systems in the areas of clinical benchmarking, clinical best practices, operating efficiency, care coordination and supply chain management. As of December 31, 2016, the Company operated a network of surgical facilities in the United States, which included 197 ambulatory surgery centers (ASCs) and seven surgical hospitals in partnership with approximately 3,000 physician partners. The Company’s operations consist of its ownership and management of ASCs and surgical hospitals. Its ASCs provide the facilities, equipment, supplies and clinical support staff necessary to provide non-emergency surgical services to patients not requiring hospitalization. Its surgical hospitals allow physicians to perform a range of surgical procedures, including surgeries, and allow patients to stay in the hospital for several nights to recover.
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