MultiPlan (NYSE:MPLN – Get Free Report) and WEX (NYSE:WEX – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
80.7% of MultiPlan shares are owned by institutional investors. Comparatively, 98.9% of WEX shares are owned by institutional investors. 7.7% of MultiPlan shares are owned by insiders. Comparatively, 1.1% of WEX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for MultiPlan and WEX, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MultiPlan | 0 | 3 | 0 | 0 | 2.00 |
| WEX | 0 | 3 | 6 | 0 | 2.67 |
Risk & Volatility
MultiPlan has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, WEX has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Valuation & Earnings
This table compares MultiPlan and WEX’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MultiPlan | $1.08 billion | 1.13 | -$572.91 million | ($0.97) | -1.99 |
| WEX | $2.35 billion | 3.48 | $201.44 million | $3.34 | 57.20 |
WEX has higher revenue and earnings than MultiPlan. MultiPlan is trading at a lower price-to-earnings ratio than WEX, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares MultiPlan and WEX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MultiPlan | -60.56% | -6.19% | -1.68% |
| WEX | 6.00% | 32.29% | 4.51% |
Summary
WEX beats MultiPlan on 13 of the 14 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 also 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. The company 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 WEX
WEX Inc. operates a commerce platform in the United States and internationally. The Fleet Solutions segment offers fleet vehicle payment solutions, transaction processing, and information management services. It also provides account and account retention services; authorization and billing inquiries, and account maintenance services; account management; credit and collections services; merchant services; analytics solutions; and ancillary services and tools to fleets to manage expenses and capital requirements. This segment markets its products directly and indirectly to businesses and government agencies with fleets of commercial vehicles; and indirectly through co-branded and private label relationships. The Travel and Corporate Solutions segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions. Its products include virtual cards that are used for transactions where no physical card is presented. This segment markets its products directly and indirectly to customers in travel, fintech, insurance, consumer bill pay, and media verticals, as well as businesses and financial institutions. The Health and Employee Benefit Solutions segment offers software-as-a-service (SaaS) platform for consumer directed healthcare benefits and full-service benefit enrollment solutions. Its SaaS platform includes embedded payment solutions and plan administration services for consumer-directed health benefits; COBRA accounts; and benefit enrollment and administration services. This segment also provides custodial and depository services for health savings accounts; and payroll-related benefits. This segment markets its products through third-party administrators, financial institutions, payroll providers, and health plans. The company was formerly known as Wright Express Corporation and changed its name to WEX Inc. in October 2012. WEX Inc. was founded in 1983 and is based in Portland, Maine.
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