Contrasting athenahealth (ATHN) & Cardtronics (CATM)

Cardtronics (NASDAQ:CATM) and athenahealth (NASDAQ:ATHN) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Earnings and Valuation

This table compares Cardtronics and athenahealth’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cardtronics $1.51 billion 0.99 -$145.35 million $2.77 11.72
athenahealth $1.22 billion 4.13 $53.10 million $1.57 79.30

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cardtronics and athenahealth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cardtronics 1 2 2 0 2.20
athenahealth 0 13 8 0 2.38

Cardtronics presently has a consensus price target of $26.33, suggesting a potential downside of 18.87%. athenahealth has a consensus price target of $152.67, suggesting a potential upside of 22.62%. Given athenahealth’s stronger consensus rating and higher possible upside, analysts clearly believe athenahealth is more favorable than Cardtronics.

Profitability

This table compares Cardtronics and athenahealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cardtronics -11.00% 24.21% 5.09%
athenahealth 8.71% 14.71% 9.30%

Volatility & Risk

Cardtronics has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, athenahealth has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

athenahealth beats Cardtronics on 8 of the 12 factors compared between the two stocks.

Cardtronics Company Profile

Cardtronics plc provides automated consumer financial services through its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company offers cash dispensing and bank balance inquiries; and financial related services to cardholders, as well as ATM management and ATM equipment-related services to large retail merchants, smaller retailers, and operators of facilities, such as shopping malls, airports, and train stations. It also provides transaction processing, cash and cash delivery management, supply, and telecommunications, as well as routine and technical maintenance services for ATMs; and owns and operates electronic funds transfer transaction processing platforms that offer transaction processing services to its network of ATMS, as well as other ATMs under managed services arrangements. In addition, the company provides processing services for issuers of debit cards; and owns and operates Allpoint network, a surcharge-free ATM network, which offers surcharge-free ATM access to participating banks, credit unions, and stored-value debit card issuers. As of December 31, 2017, it provided services to approximately 230,000 ATMs in North America, Europe, Africa, Australia, and New Zealand. The company was founded in 1989 and is headquartered in Houston, Texas.

athenahealth Company Profile

athenahealth, Inc., together with its subsidiaries, provides network-based medical record, revenue cycle, patient engagement, care coordination, and population health services for medical groups and health systems. It offers athenaCollector, a network-enabled billing and practice management solution; athenaClinicals, an electronic health record for managing patient's clinical documentation; athenaCommunicator, an engagement and communication solution that provides an automated communication service between patients and provider practices for interactions outside the exam room; and athenaCoordinator for order transmission and care coordination services. The company also provides athenahealth Population Health, a cloud-based population health service; and Epocrates services that include clinical information and decision support services in the areas of drug and disease information, medical calculator and tools, clinical guidelines, clinical messaging, and market research. In addition, it offers athenahealth Health Plan data exchange facilitates to exchange the data between providers and health plans for the healthcare operations of clients; athenaOne Analytics that includes an analytics and dashboard application, as well as provides visibility into the financial and operational health of an organization; and pre-certification processing and referral processing services. The company serves healthcare providers, medical groups, and health systems through its direct sales force and channel partners in the United States and internationally. athenahealth, Inc. was formerly known as athenahealth.com, Inc. and changed its name to athenahealth, Inc. in November 2000. The company was founded in 1997 and is headquartered in Watertown, Massachusetts.

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