Financial Analysis: Spindle (OTCMKTS:SPDL) & MultiPlan (NYSE:MPLN)

Spindle (OTCMKTS:SPDL) and MultiPlan (NYSE:MPLN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Spindle and MultiPlan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spindle	0	0	0	0	0.00
MultiPlan	0	2	0	0	2.00

MultiPlan has a consensus target price of $25.00, indicating a potential upside of 104.25%. Given MultiPlan’s stronger consensus rating and higher probable upside, analysts clearly believe MultiPlan is more favorable than Spindle.

Earnings & Valuation

This table compares Spindle and MultiPlan”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spindle	N/A	N/A	N/A	N/A	N/A
MultiPlan	$942.61 million	0.21	-$91.70 million	($95.05)	-0.13

Spindle has higher earnings, but lower revenue than MultiPlan.

Institutional & Insider Ownership

87.2% of MultiPlan shares are held by institutional investors. 14.6% of Spindle shares are held by company insiders. Comparatively, 8.0% of MultiPlan shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spindle	N/A	N/A	N/A
MultiPlan	-163.30%	-12.14%	-1.84%

About Spindle

Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.

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.