Critical Comparison: Change Healthcare (NASDAQ:CHNG) versus Autohome (NASDAQ:ATHM)

Change Healthcare (NASDAQ:CHNG) and Autohome (NYSE:ATHM) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Change Healthcare and Autohome, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Change Healthcare 0 1 16 0 2.94
Autohome 0 6 4 0 2.40

Change Healthcare currently has a consensus price target of $18.77, suggesting a potential upside of 42.39%. Autohome has a consensus price target of $99.51, suggesting a potential upside of 32.61%. Given Change Healthcare’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Change Healthcare is more favorable than Autohome.

Valuation and Earnings

This table compares Change Healthcare and Autohome’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Change Healthcare N/A N/A N/A N/A N/A
Autohome $1.05 billion 8.42 $417.57 million $3.75 20.01

Autohome has higher revenue and earnings than Change Healthcare.

Institutional & Insider Ownership

88.7% of Change Healthcare shares are held by institutional investors. Comparatively, 57.3% of Autohome shares are held by institutional investors. 5.7% of Autohome shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Change Healthcare and Autohome’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Change Healthcare N/A N/A N/A
Autohome 37.62% 27.20% 20.01%

Summary

Autohome beats Change Healthcare on 5 of the 9 factors compared between the two stocks.

Change Healthcare Company Profile

Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the United States healthcare system. It operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment provides software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee. Change Healthcare Inc.(NasdaqGS:CHNG) operates independently of McKesson Corporation as of June 26, 2019.

Autohome Company Profile

Autohome Inc. operates as an online destination for automobile consumers in the People's Republic of China. The company, through its Websites, autohome.com.cn and che168.com, delivers comprehensive, independent, and interactive content to automobile buyers and owners, including company generated content, such as automobile-related articles and reviews, pricing trends in various local markets, photographs, video clips, and live streaming; automobile library, which comprises a range of specifications covering performance levels, dimensions, powertrains, vehicle bodies, interiors, safety, entertainment systems, and other features, as well as manufacturers' suggested retail prices; new and used automobile listings, and promotional information; and user generated content and forums. It also offers advertising services for automakers and dealers; dealer subscription services that allow dealers to market their inventory and services through its Websites and mobile applications; and used automobile listings services, which allow used automobile dealers and individuals to market their automobiles for sale on its Websites. In addition, Autohome Inc. operates Autohome Mall, an online transaction platform that facilitates direct vehicle sales and commission-based services; provides iOS- and Android-based applications to allow its users to access its content; and offers technical support and management consulting services. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was founded in 2008 and is headquartered in Beijing, the People's Republic of China. Autohome Inc. is a subsidiary of Yun Chen Capital Cayman.

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