Head to Head Review: PRA Health Sciences (PRAH) and Medpace (MEDP)

PRA Health Sciences (NASDAQ: PRAH) and Medpace (NASDAQ:MEDP) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares PRA Health Sciences and Medpace’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PRA Health Sciences $2.26 billion 2.66 $86.92 million $3.20 29.35
Medpace $436.15 million 3.58 $39.12 million $1.52 28.90

PRA Health Sciences has higher revenue and earnings than Medpace. Medpace is trading at a lower price-to-earnings ratio than PRA Health Sciences, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

PRA Health Sciences has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Medpace has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PRA Health Sciences and Medpace, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PRA Health Sciences 0 1 9 0 2.90
Medpace 0 7 1 0 2.13

PRA Health Sciences currently has a consensus price target of $95.80, indicating a potential upside of 1.99%. Medpace has a consensus price target of $37.40, indicating a potential downside of 14.86%. Given PRA Health Sciences’ stronger consensus rating and higher possible upside, equities research analysts plainly believe PRA Health Sciences is more favorable than Medpace.

Insider & Institutional Ownership

98.8% of PRA Health Sciences shares are held by institutional investors. Comparatively, 26.8% of Medpace shares are held by institutional investors. 0.9% of PRA Health Sciences shares are held by company insiders. Comparatively, 29.5% of Medpace shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares PRA Health Sciences and Medpace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PRA Health Sciences 4.07% 23.06% 6.84%
Medpace 10.37% 12.50% 7.08%

Summary

PRA Health Sciences beats Medpace on 10 of the 14 factors compared between the two stocks.

PRA Health Sciences Company Profile

PRA Health Sciences, Inc., a contract research organization, provides outsourced clinical development services to the biotechnology and pharmaceutical industries worldwide. The company operates in two segments, Clinical Research and Data Solutions. The Clinical Research segment offers product registration services, including clinical trial management, project management, regulatory affairs, therapeutic expertise, clinical operations, data and programming, safety and risk management, biostatistics and medical writing, quality assurance, and late phase services. It also provides strategic solutions, such as embedded, functional services provider, staff augmentation, and custom-built development solutions, as well as commercialization services; and early development services for Phase I and Phase IIa studies, and bioanalytical analysis. The Data Solutions segment offers data, analytics, technology, and consulting solutions to the life sciences market. Its services include targeting and compensation services, and pharmaceutical audit suite; brand analytics, managed markets, commercial effectiveness, and scientific studies/clinical hubs; and technology-enabled products and services. The company conducts clinical trials in the areas of pharmaceutical development, including oncology, central nervous system, inflammation, and infectious diseases. The company was formerly known as PRA Global Holdings, Inc. and changed its name to PRA Health Sciences, Inc. in July 2014. PRA Health Sciences, Inc. was founded in 1976 and is headquartered in Raleigh, North Carolina.

Medpace Company Profile

Medpace Holdings, Inc., a clinical contract research organization, provides scientifically-driven outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries worldwide. The company offers a suite of services supporting the clinical development process from Phase I to Phase IV in a range of therapeutic areas. Its clinical development services include medical affairs, clinical trial management, feasibility and start-up study, clinical monitoring, global regulatory affairs, medical writing, biometrics, pharmacovigilance, core laboratory, and quality assurance. Medpace Holdings, Inc. was founded in 1992 and is headquartered in Cincinnati, Ohio.

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