Steel Connect (NASDAQ:STCN) versus MultiPlan (NYSE:MPLN) Financial Contrast

MultiPlan (NYSE:MPLNGet Free Report) and Steel Connect (NASDAQ:STCNGet Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
MultiPlan -65.83% -8.11% -1.89%
Steel Connect 53.00% 19.76% 4.21%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MultiPlan $959.44 million 0.30 -$91.70 million ($0.98) -0.45
Steel Connect $169.04 million 0.47 $15.61 million $3.13 4.03

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

Volatility & Risk

MultiPlan has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Steel Connect has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for MultiPlan and Steel Connect, as provided by MarketBeat.com.

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

MultiPlan presently has a consensus target price of $2.00, suggesting a potential upside of 370.15%. Given MultiPlan’s higher possible upside, equities analysts clearly believe MultiPlan is more favorable than Steel Connect.

Institutional and Insider Ownership

87.2% of MultiPlan shares are held by institutional investors. Comparatively, 47.3% of Steel Connect shares are held by institutional investors. 8.2% of MultiPlan shares are held by company insiders. Comparatively, 1.8% of Steel Connect shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Steel Connect beats MultiPlan on 7 of the 12 factors compared between the two stocks.

About MultiPlan

(Get Free Report)

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 Steel Connect

(Get Free Report)

Steel Connect, Inc., together with its subsidiaries, provides supply chain services in the United States, Mainland China, Netherlands, and internationally. It offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. The company provides fulfillment services comprising order management, pick, pack and ship, retail compliance, and demand planning services; and reverse logistics services that simplifies the returns process for retailers and manufacturers, as well as operates a cloud-based e-commerce platform. In addition, it offers warehousing and inventory management services; and software licenses, maintenance, and support services. Further, the company offers its supply chain services to customers in the consumer electronics, communications, computing, medical devices, software, and retail markets. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in New York, New York.

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