IMS Health Holdings (NYSE: IMS) and Manhattan Associates (NASDAQ:MANH) are both mid-cap it services & consulting – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares IMS Health Holdings and Manhattan Associates’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IMS Health Holdings 2.99% 5.62% 1.22%
Manhattan Associates 20.38% 74.19% 41.53%

Institutional and Insider Ownership

90.3% of IMS Health Holdings shares are owned by institutional investors. 2.5% of IMS Health Holdings shares are owned by company insiders. Comparatively, 1.0% of Manhattan Associates shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for IMS Health Holdings and Manhattan Associates, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IMS Health Holdings 0 0 0 0 N/A
Manhattan Associates 0 3 2 0 2.40

Manhattan Associates has a consensus price target of $65.00, suggesting a potential upside of 58.27%.

Earnings & Valuation

This table compares IMS Health Holdings and Manhattan Associates’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
IMS Health Holdings N/A N/A N/A $0.42 N/A
Manhattan Associates $604.56 million 4.68 $124.23 million $1.74 23.60

Manhattan Associates has higher revenue and earnings than IMS Health Holdings. IMS Health Holdings is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.

Summary

Manhattan Associates beats IMS Health Holdings on 6 of the 8 factors compared between the two stocks.

About IMS Health Holdings

IMS Health Holdings, Inc. (IMS) is an information and technology services company that provides solutions to its clients in the healthcare industry. The Company has its presence in over 100 countries. The Company’s data set contains over 10 petabytes of data and over 500 million patient records. It serves healthcare organizations and life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The Company’s principal information offerings include national information offerings, sub-national information offerings and OneKey. Its technology services offerings include technology solutions, real-world evidence solutions, and workflow analytics and consulting services. It offers technology services that include data warehousing, information technology (IT) outsourcing, software applications and other services.

About Manhattan Associates

Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company operates through three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks across the functions linked in a supply chain from planning through execution. Its supply chain solutions consist of three components: Distribution Management, Transportation Management and Visibility. Its Omni-Channel Solutions include Omni-Channel Central Solutions and Omni-Channel Local Solutions. Its Inventory solutions include Inventory Optimization and Planning.

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