Cerner (NASDAQ:CERN) and Onespan (NASDAQ:OSPN) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Risk & Volatility

Cerner has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Onespan has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Insider & Institutional Ownership

83.2% of Cerner shares are owned by institutional investors. Comparatively, 68.2% of Onespan shares are owned by institutional investors. 0.8% of Cerner shares are owned by insiders. Comparatively, 19.3% of Onespan shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Cerner pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Onespan does not pay a dividend. Cerner pays out 32.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cerner and Onespan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerner 1 3 11 0 2.67
Onespan 0 1 4 0 2.80

Cerner presently has a consensus target price of $74.57, indicating a potential upside of 9.18%. Onespan has a consensus target price of $20.25, indicating a potential upside of 23.55%. Given Onespan’s stronger consensus rating and higher possible upside, analysts clearly believe Onespan is more favorable than Cerner.

Profitability

This table compares Cerner and Onespan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerner 10.75% 15.14% 10.82%
Onespan -2.30% 2.45% 1.76%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cerner $5.37 billion 4.05 $630.05 million $2.21 30.90
Onespan $212.28 million 3.11 $3.85 million $0.36 45.53

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

Summary

Cerner beats Onespan on 10 of the 16 factors compared between the two stocks.

About Cerner

Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and EHR agnostic platform, CareAware that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions. Further, it provides tech-enabled services, such as implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs, and third-party administrator services; and complementary hardware and devices for third parties. The company serves integrated integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments and public health organizations. It has a strategic collaboration with Christiana Care Health System to provide a weight loss surgery program. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

About Onespan

OneSpan, Inc. engages in the design, development, and marketing of security solutions for identity, security, and business productivity that protect and facilitate transactions online, via mobile devices, and in-person. Its solutions has the following functions: secure access to online accounts, data, assets, and applications for global enterprises; provide tools for application developers to easily integrate security functions into their web-based and mobile applications; and facilitate digital transactions involving the signing, sending, and managing of documents. The company was founded by T. Kendall Hunt in 1991 and is headquartered in Chicago, IL.

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