Analyzing MultiPlan (NYSE:MPLN) and Nuvei (NASDAQ:NVEI)

MultiPlan (NYSE:MPLN – Get Rating) and Nuvei (NASDAQ:NVEI – Get Rating) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for MultiPlan and Nuvei, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MultiPlan	0	3	0	0	2.00
Nuvei	0	1	13	0	2.93

MultiPlan presently has a consensus target price of $1.43, indicating a potential upside of 30.30%. Nuvei has a consensus target price of $60.57, indicating a potential upside of 48.13%. Given Nuvei’s stronger consensus rating and higher probable upside, analysts clearly believe Nuvei is more favorable than MultiPlan.

Institutional & Insider Ownership

83.0% of MultiPlan shares are held by institutional investors. Comparatively, 29.6% of Nuvei shares are held by institutional investors. 10.1% of MultiPlan shares are held by insiders. Comparatively, 20.0% of Nuvei shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

MultiPlan has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Nuvei has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MultiPlan	-53.06%	-2.20%	-0.62%
Nuvei	6.73%	7.91%	4.51%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MultiPlan	$1.08 billion	0.65	-$572.91 million	($0.90)	-1.22
Nuvei	$843.32 million	6.85	$56.73 million	$0.39	104.85

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

Summary

Nuvei beats MultiPlan on 12 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 Nuvei

(Get Rating)

Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific. It provides a suite of payment solutions to support lifecycle of a transaction across mobile or in-app, online, unattended, and in-store channels. The company sells and distributes its solutions through direct sales, indirect sales for small-and-medium sized businesses, and eCommerce resellers. Nuvei Corporation was founded in 2003 and is headquartered in Montreal, Canada.