Head to Head Review: MultiPlan (NYSE:MPLN) versus Flywire (NASDAQ:FLYW)

MultiPlan (NYSE:MPLN) and Flywire (NASDAQ:FLYW) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

This table compares MultiPlan and Flywire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MultiPlan	-163.30%	-12.14%	-1.84%
Flywire	4.23%	2.49%	1.86%

Earnings & Valuation

This table compares MultiPlan and Flywire”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MultiPlan	$961.52 million	0.12	-$91.70 million	($95.05)	-0.07
Flywire	$475.14 million	6.00	-$8.57 million	$0.15	152.80

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

Institutional & Insider Ownership

87.2% of MultiPlan shares are owned by institutional investors. Comparatively, 95.9% of Flywire shares are owned by institutional investors. 8.0% of MultiPlan shares are owned by insiders. Comparatively, 3.9% of Flywire shares are owned 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.

Analyst Recommendations

This is a breakdown of recent recommendations for MultiPlan and Flywire, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MultiPlan	0	2	0	0	2.00
Flywire	0	4	10	1	2.80

MultiPlan currently has a consensus price target of $25.00, suggesting a potential upside of 260.23%. Flywire has a consensus price target of $24.86, suggesting a potential upside of 8.45%. Given MultiPlan’s higher possible upside, equities research analysts clearly believe MultiPlan is more favorable than Flywire.

Volatility and Risk

MultiPlan has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Flywire has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Summary

Flywire beats MultiPlan on 12 of the 15 factors compared between the two stocks.

About MultiPlan

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.

About Flywire

Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. Its payment platform and network, and vertical-specific software help clients to get paid and help their customers to pay. The company’s platform facilitates payment flows across multiple currencies, payment types, and payment options, as well as provides direct connections to alternative payment methods, such as Alipay, Boleto, PayPal/Venmo, and Trustly. It serves education, healthcare, travel, and business to business organizations. The company was formerly known as peerTransfer Corporation and changed its name to Flywire Corporation in December 2016. Flywire Corporation was incorporated in 2009 and is headquartered in Boston, Massachusetts.