Marchex (NASDAQ:MCHX) vs. MultiPlan (NYSE:MPLN) Head to Head Review

MultiPlan (NYSE:MPLNGet Rating) and Marchex (NASDAQ:MCHXGet Rating) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for MultiPlan and Marchex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MultiPlan 0 3 0 0 2.00
Marchex 0 0 0 0 N/A

MultiPlan currently has a consensus price target of $1.43, suggesting a potential upside of 40.52%. Given MultiPlan’s higher probable upside, research analysts clearly believe MultiPlan is more favorable than Marchex.

Profitability

This table compares MultiPlan and Marchex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MultiPlan -53.06% -2.20% -0.62%
Marchex -15.80% -11.00% -8.68%

Institutional & Insider Ownership

83.0% of MultiPlan shares are held by institutional investors. Comparatively, 56.8% of Marchex shares are held by institutional investors. 10.1% of MultiPlan shares are held by company insiders. Comparatively, 20.0% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

MultiPlan has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Marchex has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.

Valuation & Earnings

This table compares MultiPlan and Marchex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MultiPlan $1.08 billion 0.60 -$572.91 million ($0.90) -1.13
Marchex $52.17 million 1.48 -$8.24 million ($0.19) -9.55

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

About MultiPlan

(Get Rating)

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services, which reduce medical costs through data-driven algorithms that detect claims over-charges and recommend or negotiate reimbursement; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment and revenue integrity services, which reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim. It also provides health benefit plans, which features reference-based pricing and tools to engage health plan members and providers to make the use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third party administrators, bill review companies, Taft-Hartley plans, and other entities that pay medical bills in the commercial healthcare, government, workers' compensation, and auto medical markets. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

About Marchex

(Get Rating)

Marchex, Inc. operates as a conversational analytics and solutions company which helps businesses connect, drive, measure, convert callers into customers, and connects the voice of the customer to business. It offers Marchex call analytics platform, Marchex call marketplace and Marchex local leads products to automotive, travel and hospitality, telecommunications, insurance, home services, digital agencies, healthcare, education & careers, financial services, legal, real estate and senior living industries. It delivers data insights and incorporates artificial intelligence (AI)-powered functionality that drives insights and solutions to help companies find, engage, and support its customers across voice and text-based communication channels. The company was founded by Russell C. Horowitz, Ethan A. Caldwell, Peter Christothoulou, and John Keister on January 17, 2003 and is headquartered in Seattle, WA.

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