Critical Comparison: Change Healthcare (NASDAQ:CHNG) vs. Clarivate Analytics (NASDAQ:CCC)

Change Healthcare (NASDAQ:CHNG) and Clarivate Analytics (NYSE:CCC) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Change Healthcare and Clarivate Analytics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 0 17 1 3.06
Clarivate Analytics 0 3 3 0 2.50

Change Healthcare currently has a consensus price target of $18.62, suggesting a potential upside of 90.56%. Clarivate Analytics has a consensus price target of $20.20, suggesting a potential upside of 0.25%. Given Change Healthcare’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Change Healthcare is more favorable than Clarivate Analytics.

Profitability

This table compares Change Healthcare and Clarivate Analytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare N/A N/A N/A
Clarivate Analytics -21.65% -3.43% -1.17%

Insider & Institutional Ownership

48.6% of Clarivate Analytics shares are held by institutional investors. 20.8% of Change Healthcare shares are held by insiders. Comparatively, 2.3% of Clarivate Analytics shares 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.

Earnings and Valuation

This table compares Change Healthcare and Clarivate Analytics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Change Healthcare N/A N/A N/A N/A N/A
Clarivate Analytics $974.34 million 7.48 -$210.98 million $0.35 57.57

Change Healthcare has higher earnings, but lower revenue than Clarivate Analytics.

Summary

Change Healthcare beats Clarivate Analytics on 8 of the 10 factors compared between the two stocks.

About Change Healthcare

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee. Change Healthcare Inc.(NasdaqGS:CHNG) operates independently of McKesson Corporation as of June 26, 2019.

About Clarivate Analytics

Clarivate Analytics Plc provides insights and analytics that enables clients to discover, protect, and commercialize ideas. It serves government and academic institutions, life science companies, and research and development corporations. The company is based in London, the United Kingdom.

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