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Analyzing Benefitfocus (BNFT) and SS&C Technologies (SSNC)

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SS&C Technologies (NASDAQ: SSNC) and Benefitfocus (NASDAQ:BNFT) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares SS&C Technologies and Benefitfocus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SS&C Technologies 19.65% 15.43% 7.21%
Benefitfocus -12.55% N/A -16.81%

Insider & Institutional Ownership

71.3% of SS&C Technologies shares are owned by institutional investors. Comparatively, 87.4% of Benefitfocus shares are owned by institutional investors. 17.5% of SS&C Technologies shares are owned by company insiders. Comparatively, 29.0% of Benefitfocus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SS&C Technologies and Benefitfocus’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SS&C Technologies $1.68 billion 7.13 $328.86 million $1.79 28.04
Benefitfocus $256.73 million 4.15 -$25.87 million ($0.79) -42.47

SS&C Technologies has higher revenue and earnings than Benefitfocus. Benefitfocus is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

SS&C Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Benefitfocus does not pay a dividend. SS&C Technologies pays out 15.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SS&C Technologies and Benefitfocus, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SS&C Technologies 0 2 7 2 3.00
Benefitfocus 0 2 7 0 2.78

SS&C Technologies currently has a consensus target price of $56.25, suggesting a potential upside of 12.05%. Benefitfocus has a consensus target price of $34.00, suggesting a potential upside of 1.34%. Given SS&C Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe SS&C Technologies is more favorable than Benefitfocus.

Volatility & Risk

SS&C Technologies has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Benefitfocus has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

SS&C Technologies beats Benefitfocus on 13 of the 16 factors compared between the two stocks.

SS&C Technologies Company Profile

SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services providers. Its products and services allow its clients to automate and integrate front-office functions, such as trading and modeling; middle-office functions, including portfolio management and reporting; and back-office functions comprising accounting, performance measurement, reconciliation, reporting, processing, and clearing. The company offers products and services in the areas of portfolio management/accounting software, performance measurement and attribution, banking and lending solutions, trading and treasury operations, client reporting, financial modeling, and property management. Its software-enabled services consist of on and offshore fund administration services; cloud-based portfolio management platform, outsourced daily reconciliation, and data management services; data management services; business process outsourcing investment accounting and operations, application software hosting, automated workflow integration, automated quality control mechanisms, and interface and connectivity services; financial data acquisition, transformation, and delivery; investor transaction processing platform; trade matching utility and delivery instruction database; and customized data feed; and connectivity service to broker-dealers and institutions. The company also provides consulting and implementation services, such as installation of systems, conversion of historical data, and training and support services. Its clients include multinational and retail banks, credit unions, hedge and private equity funds, funds of funds and family offices, institutional asset managers, insurance companies and pension funds, municipal finance groups, brokers/dealers, financial exchanges, commercial and real estate lenders, and property managers. SS&C Technologies Holdings, Inc. was founded in 1986 and is headquartered in Windsor, Connecticut.

Benefitfocus Company Profile

Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, and brokers in the United States. It operates through Employer and Carrier segments. The company’s products for insurance carriers include Marketplaces, which are online shopping environments; eEnrollment that provides online enrollment for benefits; eBilling, an electronic invoice presentment and payment solution; eExchange, a solution for communication; eSales for carriers and brokers to organize and manage accounts, track leads, generate quotes, and create proposals for products; and Core & Advanced Analytics, a data analytics solution. Its products for employers include Benefitfocus Marketplace that streamlines online enrollment, employee communication, and benefit administration; Communication Portal, an employee engagement portal; BenefitStore, a solution for employees to avail various ancillary benefits; ACA Management and Reporting, a solution for employers to manage ACA compliance; Billing & Payment, an electronic invoice presentment and payment application; Consumer-Directed Healthcare Accounts, a solution for health savings accounts management; and consolidated omnibus budget reconciliation act administration solution. In addition, the company provides professional and customer support services, which include implementation services, such as discovery, configuration, deployment, integration, testing, training, and technical support; HR support services; and video library services. Further, it offers partner offerings, such as RedBrick Health that provides access to customizable health assessments, digital coaching, tracking, and challenges; LifeLock that allows employees to purchase identity theft protection; and SAP SuccessFactors that provides employee performance management solutions, as well as Certified Carrier Programs. The company was founded in 2000 and is headquartered in Charleston, South Carolina.



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Source: on 2018-05-29 09:30:00

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