HMS (NYSE: WAGE) and Wageworks (NYSE:WAGE) are both mid-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
This is a summary of recent ratings and target prices for HMS and Wageworks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HMS presently has a consensus target price of $30.00, suggesting a potential downside of 7.66%. Wageworks has a consensus target price of $67.00, suggesting a potential upside of 30.10%. Given Wageworks’ stronger consensus rating and higher probable upside, analysts plainly believe Wageworks is more favorable than HMS.
This table compares HMS and Wageworks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares HMS and Wageworks’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HMS||$521.21 million||5.20||$40.05 million||$0.43||75.56|
|Wageworks||$364.71 million||5.60||$20.20 million||N/A||N/A|
HMS has higher revenue and earnings than Wageworks.
Volatility & Risk
HMS has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Wageworks has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
Institutional & Insider Ownership
96.2% of HMS shares are held by institutional investors. 4.5% of HMS shares are held by company insiders. Comparatively, 3.5% of Wageworks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
HMS beats Wageworks on 9 of the 13 factors compared between the two stocks.
HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. It provides coordination of benefits services to government and commercial healthcare payers and sponsors to coordinate benefits for claims; and payment integrity services that ensure healthcare claims billed are accurate and appropriate, as well as offers care management and consumer engagement solutions. The company's services also enable customers to recover improper payments; prevent future improper payments; reduce fraud, waste, and abuse; improve outcomes and increase retention; and ensure regulatory compliance. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance programs, and other healthcare payers and sponsors. The company was founded in 1974 and is headquartered in Irving, Texas.
WageWorks, Inc. engages in administering consumer-directed benefits (CDBs), which empower employees to save money on taxes, as well as provides corporate tax advantages for employers in the United States. It administers CDBs, including pre-tax spending accounts, such as health savings accounts (HSAs), health and dependent care flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs), as well as offers commuter benefit services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act, and other employee benefits. As of September 13, 2017, it had approximately 6.5 million employee participants from approximately 100,000 employer clients. WageWorks, Inc. was incorporated in 2000 and is headquartered in San Mateo, California.
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