Critical Analysis: Cyberark Software (NASDAQ:CYBR) and Medical Transcription Billing (NASDAQ:MTBC)

Cyberark Software (NASDAQ:CYBR) and Medical Transcription Billing (NASDAQ:MTBC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

79.5% of Cyberark Software shares are held by institutional investors. Comparatively, 13.4% of Medical Transcription Billing shares are held by institutional investors. 50.5% of Medical Transcription Billing shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cyberark Software and Medical Transcription Billing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyberark Software 0 5 14 0 2.74
Medical Transcription Billing 0 0 4 0 3.00

Cyberark Software currently has a consensus target price of $139.63, indicating a potential upside of 17.40%. Medical Transcription Billing has a consensus target price of $6.08, indicating a potential downside of 8.52%. Given Cyberark Software’s higher probable upside, research analysts clearly believe Cyberark Software is more favorable than Medical Transcription Billing.

Profitability

This table compares Cyberark Software and Medical Transcription Billing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cyberark Software 16.09% 12.94% 8.82%
Medical Transcription Billing -5.01% -8.85% -6.64%

Volatility and Risk

Cyberark Software has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Medical Transcription Billing has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cyberark Software and Medical Transcription Billing’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cyberark Software $343.20 million 13.08 $47.07 million $1.43 83.17
Medical Transcription Billing $50.55 million 1.61 -$2.14 million ($0.59) -11.27

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

Summary

Cyberark Software beats Medical Transcription Billing on 11 of the 14 factors compared between the two stocks.

Cyberark Software Company Profile

CyberArk Software Ltd., together with its subsidiaries, provides software-based security solutions and services for organizations to safeguard and monitor their privileged accounts. The company's solutions include Core Privileged Access Security for risk-based credential security and session management with add-on options for least privilege server and domain controller protection; Application Access Manager for secrets management for applications, tools, containers, and DevOps; and Endpoint Privilege Manager for least privilege and credential theft protection for workstations. It also provides Sensitive Information Management solution; and software maintenance and support, and professional services. The company offers its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries, as well as government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. It operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and Canada. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petach Tikva, Israel.

Medical Transcription Billing Company Profile

Medical 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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