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Financial Review: Simulations Plus (SLP) & Medical Transcription Billing, Corp. (MTBC)

Simulations Plus (NASDAQ: SLP) and Medical Transcription Billing, Corp. (NASDAQ:MTBC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk. Volatility & Risk

Simulations Plus has a beta of -0.7, suggesting that its stock price is 170% less volatile than the S&P 500. Comparatively, Medical Transcription Billing, Corp. has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Profitability

This table compares Simulations Plus and Medical Transcription Billing, Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simulations Plus 24.86% 23.21% 19.23%
Medical Transcription Billing, Corp. -32.88% -59.52% -19.17%

Analyst Ratings This is a breakdown of current ratings and recommmendations for Simulations Plus and Medical Transcription Billing, Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simulations Plus 0 0 0 0 N/A
Medical Transcription Billing, Corp. 0 0 1 0 3.00

Medical Transcription Billing, Corp. has a consensus price target of £2.25, suggesting a potential downside of 28.80%. Given Medical Transcription Billing, Corp.’s higher probable upside, analysts plainly believe Medical Transcription Billing, Corp. is more favorable than Simulations Plus.

Valuation and Earnings This table compares Simulations Plus and Medical Transcription Billing, Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Simulations Plus £21.83 million 12.88 £9.15 million £0.32 50.94
Medical Transcription Billing, Corp. £30.18 million 1.20 -£2.56 million (£1.08) -2.93

Simulations Plus has higher revenue, but lower earnings than Medical Transcription Billing, Corp.. Medical Transcription Billing, Corp. is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

32.1% of Simulations Plus shares are held by institutional investors. Comparatively, 7.4% of Medical Transcription Billing, Corp. shares are held by institutional investors.

36.9% of Simulations Plus shares are held by company insiders. Comparatively, 53.5% of Medical Transcription Billing, Corp. 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. Dividends Simulations Plus pays an annual dividend of £0.20 per share and has a dividend yield of 1.2%.

Medical Transcription Billing, Corp. does not pay a dividend. Simulations Plus pays out 62.5% of its earnings in the form of a dividend. Summary

Simulations Plus beats Medical Transcription Billing, Corp. on 8 of the 14 factors compared between the two stocks. Simulations Plus Company Profile Simulations Plus logoSimulations Plus, Inc. (Simulations Plus) develops and produces software for use in pharmaceutical research and for education, and provides consulting and contract research services to the pharmaceutical industry.

The Company offers five software products for pharmaceutical research. ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) Predictor is a computer program that takes molecular structures as inputs and predicts over 140 different properties for them at the rate of about 200,000 compounds per hour. MedChem Designer includes a small set of ADMET Predictor property predictions, allowing the chemist to modify molecular structures.

MedChem Studio is a tool for medicinal and computational chemists for both data mining and for designing new drug-like molecules. DDDPlus simulates in-vitro laboratory experiments used to measure the rate of dissolution of the drug. GastroPlus simulates the absorption, pharmacokinetics, and pharmacodynamics of drugs.

Medical Transcription Billing, Corp. Company Profile Medical Transcription Billing, Corp. logoMedical Transcription Billing, Corp. is a healthcare information technology company that provides an integrated suite of Web-based solutions, together with related business services, to healthcare providers practicing in ambulatory care settings.

The Company’s offering, PracticePro, allows healthcare practices with the core software and business services on Software-as-a-Service (SaaS) platform. PracticePro includes practice management software and related tools, which facilitate the day-to-day operation of a medical practice; electronic health records (EHR), which allow its customers to qualify for government incentives; revenue cycle management (RCM) services, which include medical billing, analytics and related services, and mobile Health (mHealth) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The Company offers a clearinghouse service, which allows clients to track claim status.

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References

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