Reviewing Inovalon (INOV) & Park City Group (PCYG)

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Inovalon (NASDAQ: PCYG) and Park City Group (NASDAQ:PCYG) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Inovalon and Park City Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inovalon 1 2 0 0 1.67
Park City Group 0 0 0 0 N/A

Inovalon currently has a consensus price target of $12.00, suggesting a potential upside of 12.68%. Given Inovalon’s higher possible upside, equities research analysts clearly believe Inovalon is more favorable than Park City Group.

Earnings & Valuation

This table compares Inovalon and Park City Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inovalon $449.36 million 3.62 $34.81 million $0.23 46.30
Park City Group $18.94 million 9.19 $3.77 million $0.16 55.00

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

Insider & Institutional Ownership

34.0% of Inovalon shares are owned by institutional investors. Comparatively, 28.0% of Park City Group shares are owned by institutional investors. 50.9% of Inovalon shares are owned by company insiders. Comparatively, 37.4% of Park City Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Inovalon has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Park City Group has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Inovalon and Park City Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inovalon -0.40% 3.69% 1.98%
Park City Group 14.46% 8.47% 6.64%

Summary

Inovalon beats Park City Group on 7 of the 12 factors compared between the two stocks.

About Inovalon

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.

About Park City Group

Park City Group, Inc., a software-as-a-service provider, designs, develops, markets, and supports proprietary software products. The company offers its products for businesses having multiple locations to assist in the management of business operations on a daily basis and communicate results of operations in a timely manner. It provides advanced commerce and supply-chain solutions that enables the retailer and supplier to manage inventory, product mix, and labor under the Scan Based Trading, ScoreTracker, Vendor Managed Inventory, Store Level Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager names. The company also offers ReposiTrak, a cloud based solution that helps food, pharmaceutical, and dietary supplement retailers and suppliers to protect their brands and remain in compliance with business records and regulatory requirements. In addition, it provides business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. The company primarily serves multi-store retail and convenience store chains, branded food manufacturers, suppliers and distributors, and manufacturing companies in North America, Europe, Asia, and the Pacific Rim. Park City Group, Inc. was founded in 1990 and is headquartered in Salt Lake City, Utah.

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