Veritec (OTCMKTS:VRTC) & R1 RCM (NASDAQ:RCM) Financial Review

R1 RCM (NASDAQ:RCM – Get Rating) and Veritec (OTCMKTS:VRTC – Get Rating) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

R1 RCM has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Veritec has a beta of -21.4, indicating that its stock price is 2,240% less volatile than the S&P 500.

Earnings & Valuation

This table compares R1 RCM and Veritec’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
R1 RCM	$1.81 billion	3.04	-$57.60 million	($0.14)	-94.14
Veritec	$350,000.00	2.29	-$510,000.00	($0.03)	-0.67

Veritec has lower revenue, but higher earnings than R1 RCM. R1 RCM is trading at a lower price-to-earnings ratio than Veritec, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for R1 RCM and Veritec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
R1 RCM	0	2	10	0	2.83
Veritec	0	0	0	0	N/A

R1 RCM currently has a consensus price target of $16.85, suggesting a potential upside of 27.82%. Given R1 RCM’s higher probable upside, equities research analysts clearly believe R1 RCM is more favorable than Veritec.

Institutional & Insider Ownership

97.1% of R1 RCM shares are held by institutional investors. 59.4% of R1 RCM shares are held by insiders. Comparatively, 51.8% of Veritec 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.

Profitability

This table compares R1 RCM and Veritec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
R1 RCM	-3.19%	0.05%	0.03%
Veritec	-201.65%	N/A	-460.19%

Summary

R1 RCM beats Veritec on 10 of the 12 factors compared between the two stocks.

About R1 RCM

(Get Rating)

R1 RCM, Inc. engages in the provision of revenue cycle management to healthcare providers. It offers end-to-end, modular revenue cycle, and physician advisory services. The company was founded by Mary Ann Tolan and J. Michael Cline in July 2003 and is headquartered in Murray, UT.

About Veritec

(Get Rating)

Veritec, Inc. engages in the development, sales, and licensing of products. It also provides services related to mobile banking solutions. The firm also operates in back-end cardholder transaction processing services for visa-branded card programs on behalf of its sponsoring bank. The company was founded on September 8, 1982 and is headquartered in Golden Valley, MN.