Reviewing M3 (OTCMKTS:MTHRF) & Forian (NASDAQ:FORA)

M3 (OTCMKTS:MTHRF) and Forian (NASDAQ:FORA) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for M3 and Forian, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M3	0	0	0	0	0.00
Forian	0	0	1	0	3.00

Forian has a consensus price target of $5.00, indicating a potential upside of 142.72%. Given Forian’s stronger consensus rating and higher probable upside, analysts plainly believe Forian is more favorable than M3.

Institutional and Insider Ownership

19.6% of M3 shares are held by institutional investors. Comparatively, 19.3% of Forian shares are held by institutional investors. 31.3% of Forian shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares M3 and Forian”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M3	N/A	N/A	N/A	$28.25	0.33
Forian	$19.71 million	3.24	-$2.79 million	($0.09)	-22.89

M3 has higher earnings, but lower revenue than Forian. Forian is trading at a lower price-to-earnings ratio than M3, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares M3 and Forian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M3	N/A	N/A	N/A
Forian	N/A	N/A	N/A

Summary

Forian beats M3 on 5 of the 8 factors compared between the two stocks.

About M3

M3, Inc. provides medical-related services primarily to physicians and other healthcare professionals through Internet. The company operates through five reporting segments: Medical Platform, Evidence Solutions, Career Solutions, Site Solutions, and Overseas. It operates m3.com, a members-only web site for providing information to the healthcare professionals; MR-kun, where member doctors can independently and continuously receive information on the m3com platform; QOL-kun that provides life support information other than medical information to members; AskDoctors, where registered doctors answer questions about health and illness from the general public; MDLinx for medical professionals in the United States; and Doctors.net.uk, a website that provides developing services for pharmaceutical companies, as well as provides drug information database in France, Germany, and Spain. The company also provides career services for doctors and pharmacists, recruitment, and posting job advertisements through m3.com CAREER. In addition, it engages in the sales activities and marketing operations for pharmaceuticals and medical devices; development, sale, and support business of electronic medical records and medical equipment for medical institutions; survey service for medical professionals; sale and marketing support businesses for pharmaceutical companies, etc. through the Internet; provision of management support and consulting services to medical institutions, and home-visit nursing services; and provision of human resources services for healthcare professionals, as well as operates clinical trial facilities. The company was formerly known as So-netM3, Inc. and changed its name to M3, Inc. in January 2010. M3, Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

About Forian

Forian Inc. provides a suite of data management capabilities, and information and analytics solutions to optimize and measure operational, clinical, and financial performance for customers in the healthcare and related industries. It develops commercial, real world evidence (RWE), and market access solutions and proprietary data-driven insights, as well as offers data management solutions. The company’s subscription and services-based solutions cover the life sciences, pharma services, and healthcare payer and provider industries. Forian Inc. was founded in 2020 and is headquartered in Newtown, Pennsylvania.