Cass Information Systems (NASDAQ:CASS) and Tabula Rasa HealthCare (NASDAQ:TRHC) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Volatility & Risk
Cass Information Systems has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Tabula Rasa HealthCare has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cass Information Systems and Tabula Rasa HealthCare’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cass Information Systems | $157.24 million | 3.69 | $30.40 million | N/A | N/A |
| Tabula Rasa HealthCare | $284.71 million | 3.50 | -$32.44 million | ($0.25) | -173.38 |
Cass Information Systems has higher earnings, but lower revenue than Tabula Rasa HealthCare.
Institutional and Insider Ownership
63.0% of Cass Information Systems shares are owned by institutional investors. 2.8% of Cass Information Systems shares are owned by company insiders. Comparatively, 11.6% of Tabula Rasa HealthCare shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Cass Information Systems and Tabula Rasa HealthCare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cass Information Systems | 0 | 0 | 0 | 0 | N/A |
| Tabula Rasa HealthCare | 0 | 1 | 9 | 0 | 2.90 |
Tabula Rasa HealthCare has a consensus price target of $65.30, suggesting a potential upside of 50.65%. Given Tabula Rasa HealthCare’s higher probable upside, analysts plainly believe Tabula Rasa HealthCare is more favorable than Cass Information Systems.
Profitability
This table compares Cass Information Systems and Tabula Rasa HealthCare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cass Information Systems | 18.17% | 11.23% | 1.55% |
| Tabula Rasa HealthCare | -14.70% | -7.37% | -2.72% |
Summary
Cass Information Systems beats Tabula Rasa HealthCare on 7 of the 12 factors compared between the two stocks.
Cass Information Systems Company Profile
Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company’s services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays energy invoices, including electricity, gas, waste, and other facility related expenses; and provides telecommunications expense management solutions comprising bill processing, audit, and payment services for telephone, data line, wireless, and communication equipment expenses. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of commercial banking products and services, such as checking, savings, and time deposit accounts; commercial and commercial real estate loans; and other cash management services to privately-owned businesses and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and additional leased facilities in Fenton, Missouri, Santa Ana, California, and Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in St. Louis, Missouri.
Tabula Rasa HealthCare Company Profile
Tabula Rasa HealthCare, Inc. operates as a healthcare technology company in the field of medication safety in the United States. The company’s proprietary Medication Risk Mitigation Matrix delivers a multi-drug review, which identifies medication-related risks. Its cloud-based software applications include EireneRx, a medication decision-support and e-prescribing platform to access patients’ medication-related information; and MedWise that provides medication decision support components for clients seeking to manage their medication risk and improve medication outcomes, and patient relationships by enhancing their existing systems. The company’s cloud-based software applications also comprise RxCompanion, a medication therapy management software platform for the identification and resolution of medication and other health related problems; TruChart, an electronic health record (EHR) system for Programs of All-Inclusive Care for the Elderly (PACE) programs; and PACElogic, which deliver real-time sharable workflows comprising EHR, customer relationship management, claims adjudication, electronic data interchange, care management, coordination, planning, integration with community-based providers, and various Federal and State required reporting for PACE organizations and small health plans. Tabula Rasa HealthCare, Inc. also offers clinical pharmacist collaboration, prescription fulfillment and reminder packaging, and pharmacy cost management services, as well as health plan management services, including risk adjustment and third party administrator services. As of December 31, 2018, it served 224 healthcare organizations. The company offers its cloud-based software solutions to prescribers, pharmacists, and healthcare organizations for managing the medication-related needs of their patients. Tabula Rasa HealthCare, Inc. was founded in 2009 and is headquartered in Moorestown, New Jersey.
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