MTECH ACQUISITI/SH CL A (NASDAQ:MTEC) and Inovalon (NASDAQ:INOV) are both unclassified companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Risk and Volatility

MTECH ACQUISITI/SH CL A has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Inovalon has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for MTECH ACQUISITI/SH CL A and Inovalon, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTECH ACQUISITI/SH CL A 0 0 0 0 N/A
Inovalon 0 2 1 0 2.33

Inovalon has a consensus target price of $15.33, suggesting a potential upside of 16.69%. Given Inovalon’s higher probable upside, analysts clearly believe Inovalon is more favorable than MTECH ACQUISITI/SH CL A.

Institutional & Insider Ownership

35.4% of MTECH ACQUISITI/SH CL A shares are owned by institutional investors. Comparatively, 33.5% of Inovalon shares are owned by institutional investors. 50.9% of Inovalon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares MTECH ACQUISITI/SH CL A and Inovalon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTECH ACQUISITI/SH CL A N/A N/A -$30,000.00 N/A N/A
Inovalon $527.68 million 3.80 -$39.16 million $0.18 73.00

MTECH ACQUISITI/SH CL A has higher earnings, but lower revenue than Inovalon.

Profitability

This table compares MTECH ACQUISITI/SH CL A and Inovalon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTECH ACQUISITI/SH CL A N/A -0.60% -0.05%
Inovalon -7.32% 3.88% 1.56%

Summary

Inovalon beats MTECH ACQUISITI/SH CL A on 7 of the 10 factors compared between the two stocks.

MTECH ACQUISITI/SH CL A Company Profile

MTech Acquisition Corp. focuses on entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. The company was incorporated in 2017 and is based in Orlando, Florida.

Inovalon Company Profile

Inovalon Holdings, Inc., a technology company, provides cloud-based platforms empowering data-driven healthcare. It operates the Inovalon ONE Platform, a cloud-based platform that interconnect with the healthcare ecosystem to aggregate and analyze data in real-time, as well as empowers the application in resulting insights. The company also operates myABILITY software platform, an integrated set of cloud-based applications for providers that offers connectivity, administrative, clinical and quality analysis, management, and performance improvement capabilities to acute, post-acute, and ambulatory point-of-care provider facilities. In addition, it offers advisory, implementation, and support services. The company serves health plans and provider organizations, as well as pharmaceutical, medical device, and diagnostics companies. Its platforms include information of data pertaining to approximately 964,000 physicians; 519,000 clinical facilities; and approximately 264 million individuals and 42 billion medical events. Inovalon Holdings, Inc. was founded in 1998 and is headquartered in Bowie, Maryland.

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