Reviewing Research Solutions (NASDAQ:RSSS) and MultiPlan (NYSE:MPLN)

Research Solutions (NASDAQ:RSSS) and MultiPlan (NYSE:MPLN) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Research Solutions	-1.05%	-4.96%	-1.63%
MultiPlan	-9.54%	-8.31%	-2.05%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Research Solutions	$37.70 million	2.66	$570,000.00	($0.02)	-154.00
MultiPlan	$961.52 million	0.49	-$91.70 million	($0.15)	-4.91

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

Analyst Recommendations

This is a summary of current ratings and price targets for Research Solutions and MultiPlan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Research Solutions	0	0	2	0	3.00
MultiPlan	0	0	0	0	N/A

Research Solutions presently has a consensus price target of $4.68, indicating a potential upside of 51.79%. MultiPlan has a consensus price target of $2.00, indicating a potential upside of 171.48%. Given MultiPlan’s higher probable upside, analysts clearly believe MultiPlan is more favorable than Research Solutions.

Volatility & Risk

Research Solutions has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, MultiPlan has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

33.6% of Research Solutions shares are owned by institutional investors. Comparatively, 87.2% of MultiPlan shares are owned by institutional investors. 26.5% of Research Solutions shares are owned by insiders. Comparatively, 8.2% of MultiPlan shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Research Solutions beats MultiPlan on 8 of the 12 factors compared between the two stocks.

About Research Solutions

Research Solutions, Inc., through its subsidiaries, provides cloud-based software-as-a-service research platform. The company is also involved in the transactional sale of published scientific, technical, and medical (STM) content managed, sourced, and delivered through the Transactions platform. Its solutions enable life science and other research intensive organizations to accelerate their research and development activities with access and management STM articles used throughout the intellectual property development lifecycle. The company was formerly known as Derycz Scientific, Inc. and changed its name to Research Solutions, Inc. in March 2013. Research Solutions, Inc. was incorporated in 2006 and is based in Henderson, Nevada.

About MultiPlan

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 that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.