Head-To-Head Analysis: Inovalon (INOV) vs. Verisk Analytics (VRSK)

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Inovalon (NASDAQ: VRSK) and Verisk Analytics (NASDAQ:VRSK) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Inovalon has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Inovalon and Verisk Analytics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inovalon 1 2 0 0 1.67
Verisk Analytics 0 7 5 0 2.42

Inovalon currently has a consensus target price of $12.00, indicating a potential upside of 1.52%. Verisk Analytics has a consensus target price of $104.58, indicating a potential downside of 12.03%. Given Inovalon’s higher possible upside, analysts clearly believe Inovalon is more favorable than Verisk Analytics.

Valuation and Earnings

This table compares Inovalon and Verisk Analytics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inovalon $449.36 million 4.02 $34.81 million $0.23 51.39
Verisk Analytics $2.15 billion 9.13 $555.10 million $3.21 37.04

Verisk Analytics has higher revenue and earnings than Inovalon. Verisk Analytics is trading at a lower price-to-earnings ratio than Inovalon, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Inovalon and Verisk Analytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inovalon -0.40% 3.69% 1.98%
Verisk Analytics 26.58% 31.35% 10.29%

Insider and Institutional Ownership

34.0% of Inovalon shares are owned by institutional investors. Comparatively, 92.3% of Verisk Analytics shares are owned by institutional investors. 50.9% of Inovalon shares are owned by company insiders. Comparatively, 3.2% of Verisk Analytics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Verisk Analytics beats Inovalon on 10 of the 14 factors compared between the two stocks.

Inovalon Company Profile

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models in the healthcare industry. The company's platform enables the assessment and enhancement of clinical and quality outcomes and financial performance. It serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. The company provides technology that supports approximately 500 healthcare organizations. Its platforms are informed by data pertaining to approximately 932,000 physicians; 455,000 clinical facilities; and approximately 240 million individuals and 37 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.

Verisk Analytics Company Profile

Verisk Analytics, Inc. provides data analytics solutions for customers in the insurance, energy, and financial markets in the United States and internationally. Its Decision Analytics segment develops predictive models to forecast scenarios, and produce standard and customized analytics for predicting loss, selecting and pricing risk, detecting fraud before and after a loss event, and quantifying losses. It provides fraud-detection tools for the property and casualty (P&C) insurance industry; data analytics for energy, chemicals, and metals and mining industries; and data and information services that enable enhanced compliance with environmental health and safety, as well as helps businesses and governments to anticipate and manage climate-and weather-related risks. The company's Risk Assessment segment offers solutions to P&C insurance customers and focuses on prediction of loss, and selection and pricing of risk. Its solutions include industry-standard insurance programs that help P&C insurers in defining coverage and issue policies; actuarial services to help its customers analyze and price their risks; and customized services that include assisting with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and other business decisions, as well as supplies information to various customers in other markets. This segment's solutions also comprise property-specific rating and underwriting information on properties, businesses, and communities to evaluate, price, and process commercial insurance applications, including property, auto, general liability, business owner's policy, and workers compensation. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

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