Critical Comparison: NantHealth (NASDAQ:NH) & QXO (NASDAQ:QXO)

QXO (NASDAQ:QXO) and NantHealth (NASDAQ:NH) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QXO and NantHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	7	1	3.13
NantHealth	0	0	0	0	0.00

QXO currently has a consensus price target of $33.17, indicating a potential upside of 60.34%. Given QXO’s stronger consensus rating and higher possible upside, analysts plainly believe QXO is more favorable than NantHealth.

Insider and Institutional Ownership

58.7% of QXO shares are owned by institutional investors. Comparatively, 4.5% of NantHealth shares are owned by institutional investors. 51.3% of QXO shares are owned by insiders. Comparatively, 61.3% of NantHealth shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares QXO and NantHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	30.08%	1.58%	1.30%
NantHealth	-94.67%	N/A	-39.82%

Volatility and Risk

QXO has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Earnings and Valuation

This table compares QXO and NantHealth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$55.95 million	214.61	-$1.07 million	($10.05)	-2.06
NantHealth	$67.68 million	0.00	-$67.78 million	($7.65)	0.00

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

Summary

QXO beats NantHealth on 11 of the 15 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

About NantHealth

NantHealth, Inc. engages in the provision of enterprise solutions that help businesses transform complex data into actionable insights. It is also involved in marketing solutions as a comprehensive integrated solution that includes clinical decision support, payer engagement solutions, data analysis, and network monitoring and management. The company was founded by Patrick Soon-Shiong on July 7, 2010 and is headquartered in Morrisville, NC.