Quality Systems (QSII) & Total System Services (TSS) Critical Comparison
Total System Services (NYSE: TSS) and Quality Systems (NASDAQ:QSII) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.
Total System Services pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. Quality Systems does not pay a dividend. Total System Services pays out 23.1% of its earnings in the form of a dividend.
Insider and Institutional Ownership
75.2% of Total System Services shares are held by institutional investors. Comparatively, 70.4% of Quality Systems shares are held by institutional investors. 2.6% of Total System Services shares are held by company insiders. Comparatively, 17.9% of Quality Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Total System Services and Quality Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Total System Services||1||9||16||0||2.58|
Total System Services currently has a consensus target price of $69.17, suggesting a potential downside of 7.17%. Quality Systems has a consensus target price of $15.07, suggesting a potential upside of 3.73%. Given Quality Systems’ higher probable upside, analysts clearly believe Quality Systems is more favorable than Total System Services.
This table compares Total System Services and Quality Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Total System Services||8.73%||26.25%||9.23%|
Earnings and Valuation
This table compares Total System Services and Quality Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Total System Services||$4.17 billion||3.28||$319.63 million||$2.25||33.12|
|Quality Systems||$509.62 million||1.82||$18.24 million||$0.43||33.79|
Total System Services has higher revenue and earnings than Quality Systems. Total System Services is trading at a lower price-to-earnings ratio than Quality Systems, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Total System Services has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Quality Systems has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Total System Services beats Quality Systems on 12 of the 16 factors compared between the two stocks.
About Total System Services
Total System Services, Inc. (TSYS) is a payment solutions provider that provides payment processing services, merchant services and related payment services to financial and non-financial institutions. The Company’s segments include North America Services, Merchant Services, NetSpend and International Services. In addition, it provides general purpose reloadable (GPR) prepaid and payroll cards, and alternative financial service solutions to the underbanked and other consumers. The Company’s Merchant Services segment provides third party processing services to merchant acquirers and Independent Sales Organizations (ISOs) and financial institutions. The Company’s NetSpend segment is engaged in the provision and sale of prepaid access devices, such as its GPR prepaid debit cards. The Company’s services and solutions include Issuing Services, Acquiring Services, Prepaid Solutions and Merchant Solutions.
About Quality Systems
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
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