Head to Head Analysis: Acadia Healthcare (ACHC) versus Streamline Health Solutions (NASDAQ:STRM)

Streamline Health Solutions (NASDAQ: STRM) and Acadia Healthcare (NASDAQ:ACHC) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Streamline Health Solutions and Acadia Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Streamline Health Solutions -24.50% -56.04% -15.49%
Acadia Healthcare 6.07% 8.57% 3.22%

Valuation and Earnings

This table compares Streamline Health Solutions and Acadia Healthcare’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Streamline Health Solutions $27.06 million 1.11 -$5.16 million ($0.31) -4.84
Acadia Healthcare $2.85 billion 0.88 $6.14 million $1.97 14.43

Acadia Healthcare has higher revenue and earnings than Streamline Health Solutions. Streamline Health Solutions is trading at a lower price-to-earnings ratio than Acadia Healthcare, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Streamline Health Solutions has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Streamline Health Solutions and Acadia Healthcare, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Streamline Health Solutions 0 0 0 0 N/A
Acadia Healthcare 0 6 8 0 2.57

Acadia Healthcare has a consensus price target of $43.92, indicating a potential upside of 54.53%. Given Acadia Healthcare’s higher probable upside, analysts plainly believe Acadia Healthcare is more favorable than Streamline Health Solutions.

Institutional and Insider Ownership

37.8% of Streamline Health Solutions shares are held by institutional investors. 26.1% of Streamline Health Solutions shares are held by insiders. Comparatively, 11.1% of Acadia Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Acadia Healthcare beats Streamline Health Solutions on 9 of the 12 factors compared between the two stocks.

Streamline Health Solutions Company Profile

Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.

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