Slack (NYSE:WORK) and Performant Financial (NASDAQ:PFMT) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Earnings and Valuation
This table compares Slack and Performant Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Slack||$400.55 million||35.30||-$140.68 million||N/A||N/A|
|Performant Financial||$155.67 million||0.35||-$8.01 million||($0.32)||-3.19|
Performant Financial has lower revenue, but higher earnings than Slack.
This table compares Slack and Performant Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Slack and Performant Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Slack presently has a consensus price target of $36.44, indicating a potential upside of 40.20%. Given Slack’s stronger consensus rating and higher probable upside, equities analysts plainly believe Slack is more favorable than Performant Financial.
Institutional and Insider Ownership
19.4% of Slack shares are owned by institutional investors. Comparatively, 56.5% of Performant Financial shares are owned by institutional investors. 32.3% of Performant Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Slack beats Performant Financial on 8 of the 11 factors compared between the two stocks.
Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model. The company was formerly known as Tiny Speck, Inc. and changed its name to Slack Technologies, Inc. in 2014. Slack Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.
About Performant Financial
Performant Financial Corporation provides technology-enabled audit, recovery, outsource customer, and related analytics services in the United States. The company offers recovery services primarily to the government-supported student loan industry serving guaranty agencies, private financial institutions, and the Department of Education; and restructures and recovers student loans issued directly by banks to students outside of federal lending programs. It also provides audit and recovery services related to improper payments in the healthcare market; and recovery and risk management advisory services to the Department of the Treasury and various financial institutions, as well as to federal, state, and municipal tax authorities. In addition, the company offers services from post-and pre-payment audit of healthcare claims to detection of fraud, waste and abuse of healthcare claims, to coordination of benefits and pharmacy fraud detection. The company was formerly known as DCS Holdings, Inc. and changed its name to Performant Financial Corporation in 2005. Performant Financial Corporation was founded in 1976 and is headquartered in Livermore, California.
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