Critical Survey: Streamline Health Solutions (NASDAQ:STRM) and iRhythm Technologies (NASDAQ:IRTC)

iRhythm Technologies (NASDAQ:IRTC) and Streamline Health Solutions (NASDAQ:STRM) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for iRhythm Technologies and Streamline Health Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	0	1	9	0	2.90
Streamline Health Solutions	0	0	0	1	4.00

iRhythm Technologies presently has a consensus target price of $137.30, indicating a potential downside of 1.98%. Given iRhythm Technologies’ higher possible upside, equities analysts clearly believe iRhythm Technologies is more favorable than Streamline Health Solutions.

Profitability

This table compares iRhythm Technologies and Streamline Health Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-15.90%	-101.04%	-9.55%
Streamline Health Solutions	-49.32%	-68.23%	-24.77%

Insider & Institutional Ownership

31.7% of Streamline Health Solutions shares are held by institutional investors. 1.1% of iRhythm Technologies shares are held by company insiders. Comparatively, 30.6% of Streamline Health Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares iRhythm Technologies and Streamline Health Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$591.84 million	7.56	-$113.29 million	($3.14)	-44.61
Streamline Health Solutions	$17.90 million	1.29	-$10.16 million	($2.28)	-2.33

Streamline Health Solutions has lower revenue, but higher earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than Streamline Health Solutions, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

iRhythm Technologies has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Summary

Streamline Health Solutions beats iRhythm Technologies on 9 of the 15 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

About Streamline Health Solutions

Streamline Health Solutions, Inc. offers health information technology solutions and associated services for hospitals and health systems in the United States and Canada. The company offers RevID, an automated revenue reconciliation software; eValuator, a coding analysis platform; data comparison engine; coding and clinical documentation improvement (CDI) solutions, including CDI, abstracting, and physician query; and financial management solutions, such as accounts receivable management, denials management, claims processing, spend management, and audit management. It also provides auditing and coding, software, and professional services. The company sells its solutions and services through direct sales force and reseller partnerships. Streamline Health Solutions, Inc. was incorporated in 1989 and is based in Alpharetta, Georgia.