Critical Contrast: EXA (EXA) & Merge Healthcare (NASDAQ:MRGE)

EXA (NASDAQ: EXA) and Merge Healthcare (NASDAQ:MRGE) are both companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for EXA and Merge Healthcare, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXA 0 4 0 0 2.00
Merge Healthcare 0 0 0 0 N/A

EXA presently has a consensus price target of $24.25, indicating a potential upside of 0.04%. Given EXA’s higher possible upside, research analysts plainly believe EXA is more favorable than Merge Healthcare.

Institutional and Insider Ownership

74.4% of EXA shares are owned by institutional investors. 11.5% of EXA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares EXA and Merge Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXA -15.10% -62.82% -18.57%
Merge Healthcare 3.02% 5.19% 1.77%

Earnings & Valuation

This table compares EXA and Merge Healthcare’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EXA $72.58 million 5.04 -$1.13 million N/A N/A
Merge Healthcare N/A N/A N/A N/A N/A

Merge Healthcare has lower revenue, but higher earnings than EXA.

Summary

EXA beats Merge Healthcare on 4 of the 7 factors compared between the two stocks.

EXA Company Profile

Exa Corporation develops, sells and supports simulation software and services that manufacturers use in design and engineering processes. The Company focuses primarily on the ground transportation market, including manufacturers in the passenger vehicle, highway truck, off-highway vehicle and train markets, as well as their suppliers. Its product, PowerFLOW, is a software solution for simulating fluid flow problems, including aerodynamics, thermal management and aeroacoustics, or wind noise. PowerFLOW uses its Digital Physics technology that enables it to predict fluid flows. PowerFLOW directly simulates unpredictable turbulent scales. The PowerFLOW software suite includes the simulation engine and grid generation engine, along with pre- and post-processing software products. The software is delivered in client/server architecture, or through its cloud-based offering, ExaCLOUD. With the ExaCLOUD solution, various client features and functions are accessed through a Web browser.

Merge Healthcare Company Profile

Merge Healthcare Incorporated develops software solutions that facilitate the sharing of images. The Company operates through two segments: Merge Healthcare and Merge DNA. The Company’s Merge Healthcare segment markets, sells and implements interoperability, imaging and clinical solutions to healthcare providers. The Company’s Merge DNA (Data and Analytics) segment focuses on the marketing and sale of data capture software for clinical trials and related solutions. The Merge Healthcare segment offers licensing of software (including upgrades), the sale of hardware, professional services, maintenance and electronic data interchange (EDI) services. The Merge DNA segment offers on-premise licensing and hosting arrangements, and professional services.

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