R1 RCM (NASDAQ: RCM) and Examworks Group (NYSE:EXAM) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Earnings and Valuation

This table compares R1 RCM and Examworks Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
R1 RCM $592.56 million 0.78 $177.07 million ($0.28) -15.79
Examworks Group N/A N/A N/A $0.15 233.73

R1 RCM has higher revenue and earnings than Examworks Group. R1 RCM is trading at a lower price-to-earnings ratio than Examworks Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for R1 RCM and Examworks Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
R1 RCM 0 1 0 0 2.00
Examworks Group 0 0 0 0 N/A

R1 RCM presently has a consensus price target of $5.00, indicating a potential upside of 13.12%. Given R1 RCM’s higher possible upside, analysts plainly believe R1 RCM is more favorable than Examworks Group.

Profitability

This table compares R1 RCM and Examworks Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
R1 RCM -1.32% -9.33% -1.50%
Examworks Group 1.44% 3.60% 1.21%

Institutional & Insider Ownership

47.7% of R1 RCM shares are owned by institutional investors. 62.0% of R1 RCM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About R1 RCM

R1 RCM Inc., formerly Accretive Health, Inc., is a provider of revenue cycle management (RCM) and physician advisory services (PAS) to healthcare providers. The Company is engaged in providing management services of revenue cycle operations for the United States-based hospitals and other medical services providers. Its primary service offering consists of end-to-end RCM, which the Company deploys through a co-managed relationship or an operating partner relationship. The Company’s PAS offering assists hospitals in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes. The Company also provides customers with retrospective appeal management service support for both governmental and commercial payers. Its physicians conduct detailed retrospective reviews of medical records to identify medical necessity for hospital services and the required documentation to support an appeal.

About Examworks Group

ExamWorks Group, Inc. is a provider of independent medical examinations (IMEs), peer reviews, bill reviews, Medicare compliance, case management and other related services (IME services or the IME industry). The Company conducts its business through four geographic segments, namely, the United States, Canada, the United Kingdom and Australia. The Company provides IME services through its medical panel of credentialed physicians and other medical providers. Its clients include property and casualty insurance carriers, law firms, third-party claim administrators and government agencies that use independent services to confirm the veracity of claims by sick or injured individuals and to facilitate care for workers’ compensation, automotive, personal injury liability and disability insurance coverage. The Company also provides a range of services, including Medicare compliance services, bill review services and case management services.

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