Claritev (NYSE:CTEV) and Waystar (NASDAQ:WAY) Head to Head Contrast

Waystar (NASDAQ:WAY) and Claritev (NYSE:CTEV) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Waystar has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Claritev has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Waystar and Claritev’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waystar	11.18%	7.03%	4.75%
Claritev	-28.46%	N/A	-5.72%

Valuation & Earnings

This table compares Waystar and Claritev”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waystar	$1.10 billion	4.31	$112.09 million	$0.70	35.29
Claritev	$965.41 million	0.59	-$284.28 million	($17.01)	-1.97

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

Analyst Ratings

This is a summary of current recommendations and price targets for Waystar and Claritev, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waystar	1	2	18	3	2.96
Claritev	2	1	5	0	2.38

Waystar presently has a consensus target price of $35.23, suggesting a potential upside of 42.62%. Claritev has a consensus target price of $39.50, suggesting a potential upside of 17.77%. Given Waystar’s stronger consensus rating and higher probable upside, research analysts clearly believe Waystar is more favorable than Claritev.

Insider and Institutional Ownership

87.2% of Claritev shares are owned by institutional investors. 3.5% of Waystar shares are owned by insiders. Comparatively, 7.4% of Claritev shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Waystar beats Claritev on 12 of the 15 factors compared between the two stocks.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

About Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.