Critical Analysis: Viemed Healthcare (NASDAQ:VMD) and American Caresource (OTCMKTS:GNOW)

Viemed Healthcare (NASDAQ:VMD) and American Caresource (OTCMKTS:GNOW) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Viemed Healthcare and American Caresource, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viemed Healthcare	0	0	0	1	4.00
American Caresource	0	0	0	0	0.00

Given American Caresource’s higher possible upside, analysts plainly believe American Caresource is more favorable than Viemed Healthcare.

Earnings and Valuation

This table compares Viemed Healthcare and American Caresource”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viemed Healthcare	$224.26 million	1.26	$10.24 million	$0.28	25.61
American Caresource	N/A	N/A	N/A	N/A	N/A

Viemed Healthcare has higher revenue and earnings than American Caresource.

Profitability

This table compares Viemed Healthcare and American Caresource’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viemed Healthcare	4.87%	8.72%	6.48%
American Caresource	N/A	N/A	N/A

Institutional and Insider Ownership

74.2% of Viemed Healthcare shares are held by institutional investors. 20.0% of Viemed Healthcare shares are held by insiders. Comparatively, 51.5% of American Caresource shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Viemed Healthcare beats American Caresource on 7 of the 9 factors compared between the two stocks.

About Viemed Healthcare

Viemed Healthcare, Inc., together with its subsidiaries, provides home medical equipment (HME) and post-acute respiratory healthcare services to patients in the United States. It provides respiratory disease management solutions, including treatment of chronic obstructive pulmonary disease (COPD), which include non-invasive ventilation, percussion vests, and other therapies; and invasive and non-invasive ventilation and related equipment and supplies to patients suffering from COPD. The company leases non-invasive and invasive ventilators, positive airway pressure machines (PAP), durable medical equipment, percussion vests, oxygen concentrators, and other medical equipment; and sells and rents HME devices. In addition, it provides neuromuscular care and oxygen therapy services; and sleep apnea management provides sleep solutions and/or equipment, such as PAP, automatic continuous positive airway pressure, and bi-level positive airway pressure machines. Further, the company offers in home sleep apnea testing services, as well as healthcare staffing and recruitment services. Viemed Healthcare, Inc. was founded in 2006 and is headquartered in Lafayette, Louisiana.

About American Caresource

American CareSource Holdings, Inc. provides urgent and primary care services in the United States. The company operates healthcare centers that offer non-life-threatening out-patient medical care for the treatment of acute, episodic, and chronic medical conditions. Its healthcare centers provide treatment of general medical problems, including colds, flus, ear infections, hypertension, asthma, pneumonia, urinary tract infections, and other conditions; treatment of injuries, such as fractures, dislocations, sprains, bruises, and cuts; minor non-emergent surgical procedures; diagnostic tests, such as X-rays, electrocardiograms, complete blood counts, and urinalyses; and occupational and industrial medical services, including drug testing, workers’ compensation cases, and pre-employment physical examinations. It owns and operates 13 urgent and primary care centers, including 2 in Georgia, 2 in Florida, 3 in Alabama, 4 in North Carolina, and 2 in Virginia. The company was founded in 1995 and is headquartered in Atlanta, Georgia.