Comparing Benefitfocus (NASDAQ:BNFT) and BTCS (OTCMKTS:BTCS)

Benefitfocus (NASDAQ:BNFTGet Rating) and BTCS (OTCMKTS:BTCSGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares Benefitfocus and BTCS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Benefitfocus $263.10 million 1.57 -$32.17 million ($1.16) -10.64
BTCS $1.21 million 38.69 -$16.05 million ($4.09) -0.91

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

Risk & Volatility

Benefitfocus has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, BTCS has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Benefitfocus and BTCS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Benefitfocus -12.23% N/A -3.16%
BTCS -1,321.56% -197.18% -125.39%

Insider & Institutional Ownership

82.1% of Benefitfocus shares are owned by institutional investors. Comparatively, 48.1% of BTCS shares are owned by institutional investors. 21.7% of Benefitfocus shares are owned by insiders. Comparatively, 14.9% of BTCS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Benefitfocus and BTCS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Benefitfocus 1 1 1 0 2.00
BTCS 0 0 1 0 3.00

Benefitfocus currently has a consensus target price of $13.67, suggesting a potential upside of 10.75%. BTCS has a consensus target price of $6.00, suggesting a potential upside of 60.86%. Given BTCS’s stronger consensus rating and higher possible upside, analysts clearly believe BTCS is more favorable than Benefitfocus.

Summary

Benefitfocus beats BTCS on 8 of the 12 factors compared between the two stocks.

Benefitfocus Company Profile (Get Rating)

Benefitfocus, Inc. provides cloud-based benefits management technology solutions for employers and health plans in the United States. Its products for employers comprise Benefitplace, a cloud-based benefits management portal that streamlines online enrollment, employee communication, and benefit administration; Health Insights, a data analytics solution; ACA Management and Reporting, a solution for employers to manage ACA compliance; Billing & Payments, an application that synchronizes enrollment and billing information to streamline the monthly billing process, automate adjustments, and enhance accuracy of payments; and COBRA Administration, a solution that simplifies management of Consolidated Omnibus Budget Reconciliation Act, benefits. The company's products for health plans include Enrollment that provides platform for carriers to automate enrollment across all segments of their commercial group business; Billing & Payments, an electronic invoice presentment and payment solution; Exchange, a solution that bridges the integration gap between health plan and employer systems; and Quoting that gives health plans and brokers tools to organize and proactively manage accounts, track leads, generate quotes, and create proposals for multiple products. Its products for brokers consist of Health Insights that support strategic decisions for their clients with on-demand health plan analytics; Benefit Catalog, which allows brokers to offer products to their clients; and benefit catalog consultative support for brokers through benefit advisors. The company also provides implementation services to its customers in order to help ensure seamless deployment and effective utilization of its solutions; and employers with expanded support services. The company was incorporated in 2000 and is headquartered in Charleston, South Carolina.

BTCS Company Profile (Get Rating)

BTCS Inc. focuses on digital assets and blockchain technologies. The company secures disruptive next-generation blockchains and operates validator nodes on various proof of stake-based blockchain networks. It also develops a proprietary Digital Asset Platform that allows users to evaluate their crypto portfolio holdings across multiple exchanges and chains on a single platform. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2013 and is based in Silver Spring, Maryland.

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