Reviewing Phunware (NASDAQ:PHUN) & Change Healthcare (NASDAQ:CHNG)

Phunware (NASDAQ:PHUN) and Change Healthcare (NASDAQ:CHNG) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Phunware -80.97% -266.76% -44.72%
Change Healthcare -0.17% 22.03% 11.52%

Analyst Ratings

This is a summary of recent recommendations and price targets for Phunware and Change Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phunware 0 1 1 0 2.50
Change Healthcare 0 0 17 1 3.06

Phunware presently has a consensus price target of $4.00, indicating a potential upside of 222.58%. Change Healthcare has a consensus price target of $17.44, indicating a potential upside of 52.99%. Given Phunware’s higher possible upside, analysts plainly believe Phunware is more favorable than Change Healthcare.

Institutional & Insider Ownership

23.3% of Phunware shares are owned by institutional investors. 22.9% of Phunware shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Phunware $19.15 million 2.65 -$12.87 million ($0.35) -3.54
Change Healthcare $3.20 billion 1.08 -$947.60 million $1.47 7.76

Phunware has higher earnings, but lower revenue than Change Healthcare. Phunware is trading at a lower price-to-earnings ratio than Change Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Change Healthcare beats Phunware on 9 of the 14 factors compared between the two stocks.

Phunware Company Profile

Phunware Inc., together with its subsidiaries, provides Multiscreen-as-a-Service (Maas) and Data-as-a-Service (DaaS) enterprise software platform for mobile devices. Its platform enables brands to engage, manage, and monetize their mobile application portfolios. The company offers Cloud-Based Mobile Software Development Kits (SDKs), which include location-based services, mobile engagement, content management, messaging, advertising, and analytics; and mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application solutions. It also provides cloud-based vertical solutions of pre-integrated iOS and Android mobile application portfolios for healthcare, retail, media, real estate and hospitality, sports, aviation, and other sectors; and knowledge graph and data solutions which allows for real-time mobile audience targeting, reach, engagement, and monetization for 1:1 insights and interactions. The company was founded in 2009 and is headquartered in Austin, Texas.

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.

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