Streamline Health Solutions (STRM) versus Acadia Healthcare (ACHC) Critical Analysis
Streamline Health Solutions (NASDAQ: STRM) and Acadia Healthcare (NASDAQ:ACHC) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
37.9% of Streamline Health Solutions shares are held by institutional investors. 26.1% of Streamline Health Solutions shares are held by company insiders. Comparatively, 11.1% of Acadia Healthcare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Streamline Health Solutions and Acadia Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Streamline Health Solutions||-24.50%||-56.04%||-15.49%|
Earnings and Valuation
This table compares Streamline Health Solutions and Acadia Healthcare’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Streamline Health Solutions||$24.86 million||1.36||-$3.83 million||($0.31)||-5.48|
|Acadia Healthcare||$2.83 billion||0.97||$574.61 million||$1.97||15.92|
Acadia Healthcare has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Streamline Health Solutions and Acadia Healthcare, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Streamline Health Solutions||0||0||0||0||N/A|
Acadia Healthcare has a consensus price target of $46.42, indicating a potential upside of 48.01%. Given Acadia Healthcare’s higher possible upside, analysts clearly believe Acadia Healthcare is more favorable than Streamline Health Solutions.
Risk & Volatility
Streamline Health Solutions has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Acadia Healthcare beats Streamline Health Solutions on 10 of the 13 factors compared between the two stocks.
About Streamline Health Solutions
Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.
About Acadia Healthcare
Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.
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