R1 RCM (NASDAQ:RCM) and CorVel (NASDAQ:CRVL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Earnings and Valuation
This table compares R1 RCM and CorVel's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
R1 RCM | $1.19 billion | 5.60 | $12 million | ($0.08) | -317.75 |
CorVel | $592.22 million | 3.23 | $47.38 million | N/A | N/A |
CorVel has lower revenue, but higher earnings than R1 RCM.
Insider & Institutional Ownership
81.2% of R1 RCM shares are held by institutional investors. Comparatively, 47.9% of CorVel shares are held by institutional investors. 59.4% of R1 RCM shares are held by insiders. Comparatively, 50.4% of CorVel shares 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 R1 RCM and CorVel's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
R1 RCM | 3.69% | 117.07% | 4.39% |
CorVel | 7.36% | 21.07% | 9.68% |
Risk & Volatility
R1 RCM has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, CorVel has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for R1 RCM and CorVel, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
R1 RCM | 0 | 0 | 5 | 0 | 3.00 |
CorVel | 0 | 0 | 0 | 0 | N/A |
R1 RCM presently has a consensus target price of $28.60, suggesting a potential upside of 12.51%. Given R1 RCM's higher probable upside, equities research analysts plainly believe R1 RCM is more favorable than CorVel.
Summary
R1 RCM beats CorVel on 9 of the 12 factors compared between the two stocks.