Analyzing SeaChange International (NASDAQ:SEAC) and CareCloud (NASDAQ:MTBC)

SeaChange International (NASDAQ:SEACGet Rating) and CareCloud (NASDAQ:MTBCGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares SeaChange International and CareCloud’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SeaChange International $27.31 million 1.52 -$7.43 million ($0.17) -4.97
CareCloud $139.60 million 0.41 $2.84 million ($0.62) -6.08

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

Risk and Volatility

SeaChange International has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, CareCloud has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SeaChange International -27.21% -13.76% -10.65%
CareCloud 4.09% 6.01% 4.18%

Insider & Institutional Ownership

22.5% of SeaChange International shares are held by institutional investors. Comparatively, 24.3% of CareCloud shares are held by institutional investors. 3.8% of SeaChange International shares are held by insiders. Comparatively, 34.9% of CareCloud shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for SeaChange International and CareCloud, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SeaChange International 0 1 0 0 2.00
CareCloud 0 0 4 0 3.00

CareCloud has a consensus price target of $15.33, indicating a potential upside of 306.72%. Given CareCloud’s stronger consensus rating and higher possible upside, analysts clearly believe CareCloud is more favorable than SeaChange International.

Summary

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

SeaChange International Company Profile (Get Rating)

SeaChange International, Inc. provides multiscreen, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and advertising content worldwide. The company offers video products, including video back-office, a software platform that enables content and service providers to manage, monetize and deliver a seamless viewing experience to subscribers across televisions, personal computers (PCs), tablets, smart phones, and other IP-enabled devices; and media asset management software, which is used to receive, manage and publish video content for viewing on televisions, tablets, PCs and other consumer devices. It also provides an advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, the company offers client application, a multiscreen user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, it provides professional, and maintenance and technical support services, as well as managed services. The company sells and markets its products and services through a direct sales process, as well as to systems integrators and value-added resellers. It serves cable system operators, telecommunications companies, and satellite operators, as well as broadcasters and other content providers. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts.

CareCloud Company Profile (Get Rating)

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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