Diplomat Pharmacy (NYSE: DPLO) and Joint (NASDAQ:JYNT) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Volatility and Risk
Diplomat Pharmacy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Joint has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
This table compares Diplomat Pharmacy and Joint’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Diplomat Pharmacy and Joint’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diplomat Pharmacy||$4.41 billion||0.39||$28.27 million||$0.12||208.58|
|Joint||$20.52 million||3.13||-$15.17 million||($0.68)||-6.99|
Diplomat Pharmacy has higher revenue and earnings than Joint. Joint is trading at a lower price-to-earnings ratio than Diplomat Pharmacy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.2% of Diplomat Pharmacy shares are held by institutional investors. Comparatively, 45.2% of Joint shares are held by institutional investors. 30.2% of Diplomat Pharmacy shares are held by company insiders. Comparatively, 6.1% of Joint shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Diplomat Pharmacy and Joint, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Diplomat Pharmacy currently has a consensus target price of $20.56, indicating a potential downside of 17.85%. Joint has a consensus target price of $6.15, indicating a potential upside of 29.47%. Given Joint’s stronger consensus rating and higher probable upside, analysts clearly believe Joint is more favorable than Diplomat Pharmacy.
Diplomat Pharmacy beats Joint on 9 of the 13 factors compared between the two stocks.
Diplomat Pharmacy Company Profile
Diplomat Pharmacy, Inc. (Diplomat) operates a specialty pharmacy business, which stocks, dispenses and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. The Company operates through specialty pharmacy services segment. The Company’s primary focus is on medication management programs for individuals with chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, specialty infusion therapy, and various other serious and/or long-term conditions. The Company provides specialty pharmacy support services to a national network of retailers and independent pharmacy groups, hospitals and health systems. The Company offers various services, such as specialty drug dispensing, retail specialty services, hospital and health system services, and hub services. The Company’s patient care system is used to coordinate and track patient adherence and safety.
Joint Company Profile
The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.
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