Waystar (NASDAQ:WAY – Get Free Report) and Claritev (NYSE:CTEV – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
Waystar has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Claritev has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Earnings & Valuation
This table compares Waystar and Claritev”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waystar | $1.10 billion | 4.08 | $112.09 million | $0.70 | 33.39 |
| Claritev | $965.41 million | 0.47 | -$284.28 million | ($17.33) | -1.54 |
Waystar has higher revenue and earnings than Claritev. Claritev is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Waystar and Claritev, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 1 | 2 | 18 | 3 | 2.96 |
| Claritev | 2 | 1 | 5 | 0 | 2.38 |
Waystar presently has a consensus target price of $35.14, suggesting a potential upside of 50.35%. Claritev has a consensus target price of $34.50, suggesting a potential upside of 29.31%. Given Waystar’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Waystar is more favorable than Claritev.
Profitability
This table compares Waystar and Claritev’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 11.18% | 7.03% | 4.75% |
| Claritev | -29.27% | N/A | -4.36% |
Insider and Institutional Ownership
87.2% of Claritev shares are held by institutional investors. 3.5% of Waystar shares are held by insiders. Comparatively, 7.4% of Claritev 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
Waystar beats Claritev on 12 of the 15 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
About Claritev
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 that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.
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