Critical Survey: MSP Recovery (NASDAQ:LIFW) and Verisk Analytics (NASDAQ:VRSK)

MSP Recovery (NASDAQ:LIFW) and Verisk Analytics (NASDAQ:VRSK) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares MSP Recovery and Verisk Analytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-906.67%	-6.25%	-2.39%
Verisk Analytics	32.65%	274.13%	20.34%

Risk & Volatility

MSP Recovery has a beta of -2.38, indicating that its stock price is 338% less volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for MSP Recovery and Verisk Analytics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	0	0	0	0	0.00
Verisk Analytics	1	6	3	0	2.20

Verisk Analytics has a consensus target price of $302.40, suggesting a potential downside of 2.32%. Given Verisk Analytics’ stronger consensus rating and higher probable upside, analysts clearly believe Verisk Analytics is more favorable than MSP Recovery.

Institutional and Insider Ownership

3.8% of MSP Recovery shares are owned by institutional investors. Comparatively, 90.0% of Verisk Analytics shares are owned by institutional investors. 86.5% of MSP Recovery shares are owned by company insiders. Comparatively, 0.5% of Verisk Analytics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares MSP Recovery and Verisk Analytics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$10.73 million	0.97	-$56.35 million	($142.50)	-0.01
Verisk Analytics	$2.93 billion	14.78	$614.60 million	$6.83	45.33

Verisk Analytics has higher revenue and earnings than MSP Recovery. MSP Recovery is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.

Summary

Verisk Analytics beats MSP Recovery on 13 of the 14 factors compared between the two stocks.

About MSP Recovery

MSP Recovery, Inc., doing business as LifeWallet, operates as a healthcare recovery and data analytics company in the United States and Puerto Rico. The company offers claims recovery services, including services to related parties or third parties to assist entities with pursuit of claims recovery rights. It also provides LifeWallet, a scalable and expandable data ecosystem where tokenized data is stored in a platform with multiple applications, including LifeWallet EHR for hospitals, medical providers, major medical laboratories, and governmental entities that gather and store electronic health records; Chase to Pay, a real-time, or near real-time analytics driven platform that identifies the proper primary payer at the point of care; LifeChain which is in development in order to tokenize healthcare claims and patient records using blockchain technology; LifeWallet 911 which is in development for utilization by emergency service organizations; LifeWallet Legal; LifeWallet Health; and LifeWallet Sports which connected brands with college athletes. MSP Recovery, Inc. was founded in 2014 and is headquartered in Coral Gables, Florida.

About Verisk Analytics

Verisk Analytics, Inc. provides data analytics and technology solutions to the insurance markets in the United States and internationally. It offers policy language, prospective loss costs, policy writing and rating rules, and various underwriting solutions for risk selection and segmentation, pricing, and workflow optimization; property- and auto- specific rating and underwriting information solutions that allows clients to understand, quantify, underwrite, mitigate, and avoid potential loss for risks; catastrophe modeling solutions, which enables companies to identify, quantify, and plan for the financial consequences of catastrophes for use by insurers, reinsurers, intermediaries, financial institutions, and governments. The company also provides life insurance solutions for transforming current workflows in life insurance underwriting, claim insights, policy administration, unclaimed property/equity, compliance and fraud detection, and actuarial and portfolio modeling; Marketing Solutions, such as compliant, real-time decisioning, profitability, and risk assessment for inbound consumer interactions; and international underwriting and claims solutions. In addition, it offers claims insurance solutions, which provides analytics in fraud detection, compliance reporting, subrogation liability assessment, litigation, and repair cost estimation and valuation solutions; and casualty solutions, such as compliance, casualty claims decision support, and workflow automation solutions. Further, the company supplies software to the specialty insurance market. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.