Change Healthcare (NASDAQ: CHNG) is one of 78 publicly-traded companies in the “Data processing & preparation” industry, but how does it contrast to its rivals? We will compare Change Healthcare to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

52.3% of shares of all “Data processing & preparation” companies are held by institutional investors. 18.9% of shares of all “Data processing & preparation” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Change Healthcare and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare -0.17% 22.03% 11.52%
Change Healthcare Competitors -15.84% -2,206.13% -5.03%

Valuation & Earnings

This table compares Change Healthcare and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Change Healthcare $3.20 billion -$947.60 million 6.80
Change Healthcare Competitors $1.22 billion -$55.18 million -16.66

Change Healthcare has higher revenue, but lower earnings than its rivals. Change Healthcare is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Change Healthcare and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 0 17 1 3.06
Change Healthcare Competitors 791 2938 4087 213 2.46

Change Healthcare currently has a consensus price target of $17.50, indicating a potential upside of 75.00%. As a group, “Data processing & preparation” companies have a potential upside of 6.51%. Given Change Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Change Healthcare is more favorable than its rivals.

Summary

Change Healthcare beats its rivals on 9 of the 12 factors compared.

About Change Healthcare

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee.

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