Comparing MultiPlan (NYSE:MPLN) and OLO (NYSE:OLO)

MultiPlan (NYSE:MPLNGet Rating) and OLO (NYSE:OLOGet Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for MultiPlan and OLO, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MultiPlan 0 3 0 0 2.00
OLO 0 3 2 0 2.40

MultiPlan currently has a consensus target price of $1.68, indicating a potential upside of 42.66%. OLO has a consensus target price of $11.92, indicating a potential upside of 59.74%. Given OLO’s stronger consensus rating and higher probable upside, analysts plainly believe OLO is more favorable than MultiPlan.

Volatility and Risk

MultiPlan has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, OLO has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

83.0% of MultiPlan shares are held by institutional investors. Comparatively, 80.9% of OLO shares are held by institutional investors. 10.1% of MultiPlan shares are held by insiders. Comparatively, 40.5% of OLO shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MultiPlan $1.12 billion 0.67 $102.08 million $0.16 7.38
OLO $149.37 million 8.16 -$42.27 million ($0.24) -31.08

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

Profitability

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

Net Margins Return on Equity Return on Assets
MultiPlan 8.99% 4.26% 1.24%
OLO -22.67% -4.51% -4.10%

Summary

MultiPlan beats OLO on 8 of the 14 factors compared between the two stocks.

About MultiPlan

(Get Rating)

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, which reduce medical costs through data-driven algorithms that detect claims over-charges and recommend or negotiate reimbursement; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment and revenue integrity services, which reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim. It also provides health benefit plans, which features reference-based pricing and tools to engage health plan members and providers to make the use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third party administrators, bill review companies, Taft-Hartley plans, and other entities that pay medical bills in the commercial healthcare, government, workers' compensation, and auto medical markets. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

About OLO

(Get Rating)

Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. The company's platform enables on-demand commerce operations, which cover digital ordering and delivery through online and mobile ordering modules. Its modules include Order Management, an on-demand digital commerce and channel management solutions that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; and Delivery Enablement, a fulfillment network, as well as a network aggregator and channel management solution, which enables restaurants to offer, manage, and expand direct delivery, as well as allows restaurants to control and syndicate menu, pricing, location data, and availability, while directly integrating and optimizing orders from third-parties into the restaurants' point-of-sale and systems. The company also provides Customer Engagement solution, a suite of restaurant-centric marketing and sentiment solutions that enables restaurants to collect, analyze, and act on guest data; Front-of-House solution, which enables restaurants to streamline the queue orders from multiple sales channels; and Payment solution, a payment platform that offers fraud prevention that results in enhanced authorization rates for valid transactions. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.

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