Digital Media Solutions (NYSE:DMS) and MultiPlan (NYSE:MPLN) Head to Head Contrast

Digital Media Solutions (NYSE:DMS) and MultiPlan (NYSE:MPLN) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

3.2% of Digital Media Solutions shares are held by institutional investors. Comparatively, 84.2% of MultiPlan shares are held by institutional investors. 87.7% of Digital Media Solutions shares are held by insiders. Comparatively, 17.7% of MultiPlan shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Digital Media Solutions and MultiPlan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Media Solutions 0 0 4 0 3.00
MultiPlan 0 1 3 0 2.75

Digital Media Solutions currently has a consensus target price of $14.63, indicating a potential upside of 190.18%. MultiPlan has a consensus target price of $8.50, indicating a potential upside of 93.62%. Given Digital Media Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Digital Media Solutions is more favorable than MultiPlan.

Valuation and Earnings

This table compares Digital Media Solutions and MultiPlan’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Media Solutions $333.38 million 0.94 -$8.70 million $0.10 50.41
MultiPlan $937.76 million 2.99 -$520.56 million ($0.15) -29.26

Digital Media Solutions has higher earnings, but lower revenue than MultiPlan. MultiPlan is trading at a lower price-to-earnings ratio than Digital Media Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Digital Media Solutions and MultiPlan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Media Solutions 1.00% -11.84% 3.39%
MultiPlan -8.95% -2.64% -0.77%

Summary

Digital Media Solutions beats MultiPlan on 9 of the 13 factors compared between the two stocks.

Digital Media Solutions Company Profile

Digital Media Solutions, Inc. is a marketing technology company, which engages in the provision of performance-driven brand and marketplace solutions to connect, consumers and advertisers. It operates through the following segments: Brand Direct, Marketplace, and Other. The Brand Direct segment comprises fees from the charge collected to customer when the company advertise directly for them under their brand name. The Marketplace segment include fees charge to customer from advertising their business under company’s brand name. The Other segment provides management of digital media services on behalf of customers as well as SaaS. The company was founded by Joseph L. Marinucci, Fernando Borghese, Luis A. Ruelas, Matt Goodman, and David Shteif in 2012 and is headquartered in Clearwater, FL.

MultiPlan Company Profile

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services, which reduce medical costs through data-driven algorithms that detect claims over-charges and recommend or negotiate reimbursement; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment integrity services, which reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim. It also provides health benefit plans, which features reference-based pricing and tools to engage health plan members and providers to make the use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third party administrators, insurance bill review companies, Taft-Hartley plans, and other entities that pay medical bills in the commercial healthcare, government, workers' compensation, and auto medical markets. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

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