Computer Programs and Systems (NASDAQ: CPSI) is one of 205 public companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Computer Programs and Systems to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

99.2% of Computer Programs and Systems shares are held by institutional investors. Comparatively, 60.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 3.7% of Computer Programs and Systems shares are held by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are held by 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.

Dividends

Computer Programs and Systems pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Computer Programs and Systems pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 35.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Computer Programs and Systems and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Computer Programs and Systems 1 3 1 0 2.00
Computer Programs and Systems Competitors 709 4594 7322 163 2.54

Computer Programs and Systems presently has a consensus target price of $29.40, indicating a potential upside of 1.20%. As a group, “IT Services & Consulting” companies have a potential downside of 1.78%. Given Computer Programs and Systems’ higher probable upside, equities analysts plainly believe Computer Programs and Systems is more favorable than its peers.

Valuation and Earnings

This table compares Computer Programs and Systems and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Computer Programs and Systems $267.27 million $3.89 million 64.56
Computer Programs and Systems Competitors $2.74 billion $282.94 million 190.60

Computer Programs and Systems’ peers have higher revenue and earnings than Computer Programs and Systems. Computer Programs and Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Computer Programs and Systems has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Computer Programs and Systems’ peers have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Computer Programs and Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Computer Programs and Systems 2.32% 10.01% 4.64%
Computer Programs and Systems Competitors -19.58% -51.25% -3.61%

Summary

Computer Programs and Systems peers beat Computer Programs and Systems on 9 of the 15 factors compared.

Computer Programs and Systems Company Profile

Computer Programs and Systems, Inc. (CPSI) is a provider of healthcare information technology (IT) solutions for rural and community hospitals, and post-acute care facilities. The Company’s segments include acute care EHR, post-acute care EHR, and TruBridge, Rycan, and other outsourcing. Its Acute Care EHR segment consists of acute care software solutions and supports sales generated by its subsidiaries, Evident, LLC (Evident) and Healthland Inc. (Healthland). Its Post-acute Care EHR segment consists of post-acute care software solutions and support sales generated by American HealthTech, Inc. (AHT). Its TruBridge, Rycan, and Other Outsourcing segment primarily consists of business management, consulting and managed IT services sales generated by TruBridge, LLC (TruBridge) and the sale of Rycan Technologies, Inc.’s (Rycan’s) revenue cycle management workflow and automation software.

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