Reviewing Allscripts Healthcare Solutions (NASDAQ:MDRX) & WidePoint (NYSE:WYY)

Allscripts Healthcare Solutions (NASDAQ:MDRXGet Rating) and WidePoint (NYSE:WYYGet Rating) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider & Institutional Ownership

96.4% of Allscripts Healthcare Solutions shares are held by institutional investors. Comparatively, 12.0% of WidePoint shares are held by institutional investors. 1.9% of Allscripts Healthcare Solutions shares are held by insiders. Comparatively, 7.6% of WidePoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Allscripts Healthcare Solutions and WidePoint’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allscripts Healthcare Solutions $1.50 billion 1.80 $134.44 million $1.01 21.89
WidePoint $87.34 million 0.34 $340,000.00 $0.04 85.52

Allscripts Healthcare Solutions has higher revenue and earnings than WidePoint. Allscripts Healthcare Solutions is trading at a lower price-to-earnings ratio than WidePoint, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allscripts Healthcare Solutions and WidePoint, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allscripts Healthcare Solutions 1 2 3 0 2.33
WidePoint 0 0 0 0 N/A

Allscripts Healthcare Solutions presently has a consensus target price of $22.75, indicating a potential upside of 2.89%. Given Allscripts Healthcare Solutions’ higher possible upside, research analysts plainly believe Allscripts Healthcare Solutions is more favorable than WidePoint.

Profitability

This table compares Allscripts Healthcare Solutions and WidePoint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allscripts Healthcare Solutions 8.94% 10.91% 6.24%
WidePoint 0.39% 0.81% 0.45%

Volatility and Risk

Allscripts Healthcare Solutions has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, WidePoint has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Summary

Allscripts Healthcare Solutions beats WidePoint on 11 of the 13 factors compared between the two stocks.

About Allscripts Healthcare Solutions (Get Rating)

Allscripts Healthcare Solutions, Inc., together with its subsidiaries, provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records (EHR), information connectivity, private cloud hosting, outsourcing, analytics, patient access, and population health management solutions. The company operates through two segments, Hospitals and Large Physician Practices, and Veradigm. The Hospitals and Large Physician Practices segment provides integrated clinical and financial management solutions, which primarily include EHR-related software; and related installation, support and maintenance, outsourcing, private cloud hosting, and revenue cycle management services. The Veradigm segment offers payer and life sciences solutions, which are primarily targeted at payers, life sciences companies, and other healthcare stakeholders; and software applications for patient engagement and EHR software to single-specialty, and small and mid-sized physician practices, including related clinical, financial, administrative, and operational solutions. Its solutions enable clients to transition, analyze, and coordinate care, and enhance the healthcare delivery across the care community. The company serves physicians, hospitals, governments and militaries, health systems, health plans, life-sciences companies, retail clinics, surgery centers, retail pharmacies, pharmacy benefit managers, insurance companies, employer wellness clinics, consumers, lab companies, urgent care facilities, and venture capital firms, as well as post-acute organizations, such as home health and hospice agencies. Allscripts Healthcare Solutions, Inc. was founded in 1986 and is headquartered in Chicago, Illinois.

About WidePoint (Get Rating)

WidePoint Corporation provides technology management as a service (TMaaS) to the government and business enterprises in North America and Europe. It offers TMaaS solutions through a federal government certified proprietary portal to manage, analyze, and protect communications assets, as well as deploy identity management solutions that provide secured virtual and physical access to restricted environments. The company provides telecom lifecycle management, mobile and identity management, and digital billing and analytics solutions. It also offers information technology as a service, including cybersecurity, cloud, network operation, and professional services. WidePoint Corporation was founded in 1991 and is headquartered in Fairfax, Virginia.

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