Critical Contrast: Accretive Health (RCM) & Examworks Group (EXAM)

Accretive Health (NASDAQ: RCM) and Examworks Group (NYSE:EXAM) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Insider and Institutional Ownership

47.7% of Accretive Health shares are owned by institutional investors. 62.0% of Accretive Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Accretive Health and Examworks Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accretive Health 0 1 0 0 2.00
Examworks Group 0 0 0 0 N/A

Accretive Health currently has a consensus target price of $5.00, suggesting a potential upside of 26.26%. Given Accretive Health’s higher probable upside, research analysts clearly believe Accretive Health is more favorable than Examworks Group.

Profitability

This table compares Accretive Health and Examworks Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accretive Health -1.32% -9.33% -1.50%
Examworks Group 1.44% 3.60% 1.21%

Valuation and Earnings

This table compares Accretive Health and Examworks Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accretive Health $592.56 million 0.70 $177.07 million ($0.26) -15.23
Examworks Group N/A N/A N/A $0.15 233.73

Accretive Health has higher revenue and earnings than Examworks Group. Accretive Health is trading at a lower price-to-earnings ratio than Examworks Group, indicating that it is currently the more affordable of the two stocks.

Accretive Health Company Profile

R1 RCM Inc., formerly Accretive Health, Inc., is a provider of revenue cycle management (RCM) and physician advisory services (PAS) to healthcare providers. The Company is engaged in providing management services of revenue cycle operations for the United States-based hospitals and other medical services providers. Its primary service offering consists of end-to-end RCM, which the Company deploys through a co-managed relationship or an operating partner relationship. The Company’s PAS offering assists hospitals in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes. The Company also provides customers with retrospective appeal management service support for both governmental and commercial payers. Its physicians conduct detailed retrospective reviews of medical records to identify medical necessity for hospital services and the required documentation to support an appeal.

Examworks Group Company Profile

ExamWorks Group, Inc. is a provider of independent medical examinations (IMEs), peer reviews, bill reviews, Medicare compliance, case management and other related services (IME services or the IME industry). The Company conducts its business through four geographic segments, namely, the United States, Canada, the United Kingdom and Australia. The Company provides IME services through its medical panel of credentialed physicians and other medical providers. Its clients include property and casualty insurance carriers, law firms, third-party claim administrators and government agencies that use independent services to confirm the veracity of claims by sick or injured individuals and to facilitate care for workers’ compensation, automotive, personal injury liability and disability insurance coverage. The Company also provides a range of services, including Medicare compliance services, bill review services and case management services.

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