Financial Analysis: MultiPlan (NYSE:MPLN) vs. MJ (OTCMKTS:MJNE)

MultiPlan (NYSE:MPLN) and MJ (OTCMKTS:MJNE) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MultiPlan and MJ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MultiPlan	0	0	0	0	N/A
MJ	0	0	0	0	N/A

MultiPlan presently has a consensus target price of $2.00, indicating a potential upside of 247.04%. Given MultiPlan’s higher possible upside, equities research analysts plainly believe MultiPlan is more favorable than MJ.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MultiPlan	-9.54%	-8.31%	-2.05%
MJ	N/A	-86.20%	-11.18%

Valuation and Earnings

This table compares MultiPlan and MJ’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MultiPlan	$961.52 million	0.39	-$91.70 million	($0.15)	-3.84
MJ	$360,000.00	1.16	-$5.38 million	N/A	N/A

MJ has lower revenue, but higher earnings than MultiPlan.

Risk & Volatility

MultiPlan has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, MJ has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Institutional and Insider Ownership

87.2% of MultiPlan shares are held by institutional investors. 8.2% of MultiPlan shares are held by company insiders. Comparatively, 35.9% of MJ shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

MultiPlan beats MJ on 6 of the 10 factors compared between the two stocks.

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.

About MJ

MJ Holdings, Inc., a cannabis holding company, engages in cultivation management, asset, and infrastructure development business in Nevada. It is also involved in production of cannabis related products; and provision of management services, dispensaries, and consulting services. The company is headquartered in Las Vegas, Nevada.