Critical Survey: CareCloud (NASDAQ:MTBC) versus Mimecast (NASDAQ:MIME)

Mimecast (NASDAQ:MIME) and CareCloud (NASDAQ:MTBC) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares Mimecast and CareCloud’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mimecast 6.94% 10.84% 4.21%
CareCloud -2.91% -3.67% -2.67%

Volatility and Risk

Mimecast has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mimecast and CareCloud, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mimecast 0 6 8 0 2.57
CareCloud 0 0 3 0 3.00

Mimecast presently has a consensus target price of $65.69, indicating a potential downside of 3.55%. CareCloud has a consensus target price of $18.33, indicating a potential upside of 129.45%. Given CareCloud’s stronger consensus rating and higher probable upside, analysts plainly believe CareCloud is more favorable than Mimecast.

Earnings and Valuation

This table compares Mimecast and CareCloud’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mimecast $501.40 million 8.93 $29.75 million $0.49 139.00
CareCloud $105.12 million 1.09 -$8.81 million ($1.79) -4.46

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

Institutional and Insider Ownership

81.9% of Mimecast shares are owned by institutional investors. Comparatively, 24.3% of CareCloud shares are owned by institutional investors. 8.0% of Mimecast shares are owned by insiders. Comparatively, 37.1% of CareCloud shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Mimecast beats CareCloud on 11 of the 14 factors compared between the two stocks.

About Mimecast

Mimecast Ltd. engages in the provision of cloud security and risk management services for corporate information and email. It develops in suite of cloud services designed to offer cyber resilience for email and deliver comprehensive email risk management beyond the primary mail server. The firm’s products allow to secure and stores corporate communications and information to address compliance and e-discovery requirements. The company was founded by Peter Cyril Bauer and Neil Hamilton Murray in 2003 and is headquartered in London, the United Kingdom.

About CareCloud

CareCloud, Inc. brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows, and make better business and care decisions. More than 40,000 providers across the United States count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Services and solutions include revenue cycle management (RCM), practice management (PM), electronic health record (EHR), business intelligence, telehealth, and patient experience management (PXM). CareCloud is headquartered in Somerset, NJ.

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