Analyzing Generation Alpha (OTCMKTS:GNAL) & Performant Healthcare, Inc. – Common Stock (NASDAQ:PHLT)

Generation Alpha (OTCMKTS:GNAL) and Performant Healthcare, Inc. – Common Stock (NASDAQ:PHLT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Institutional and Insider Ownership

77.2% of Performant Healthcare, Inc. – Common Stock shares are owned by institutional investors. 60.8% of Generation Alpha shares are owned by insiders. Comparatively, 9.2% of Performant Healthcare, Inc. – Common Stock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Generation Alpha has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500. Comparatively, Performant Healthcare, Inc. – Common Stock has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Generation Alpha and Performant Healthcare, Inc. – Common Stock, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Alpha	0	0	0	0	0.00
Performant Healthcare, Inc. – Common Stock	0	0	0	1	4.00

Profitability

This table compares Generation Alpha and Performant Healthcare, Inc. – Common Stock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Alpha	N/A	N/A	N/A
Performant Healthcare, Inc. – Common Stock	-6.74%	-10.19%	-7.83%

Earnings and Valuation

This table compares Generation Alpha and Performant Healthcare, Inc. – Common Stock”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Alpha	N/A	N/A	N/A	N/A	N/A
Performant Healthcare, Inc. – Common Stock	$122.98 million	1.70	-$7.52 million	($0.13)	-20.54

Generation Alpha has higher earnings, but lower revenue than Performant Healthcare, Inc. – Common Stock.

Summary

Generation Alpha beats Performant Healthcare, Inc. – Common Stock on 5 of the 9 factors compared between the two stocks.

About Generation Alpha

Generation Alpha, Inc. focuses on the research, design, development, and manufacturing of indoor horticulture lighting, plant nutrient products, and ancillary equipment in the United States and internationally. The company offers digital ballasts; metal halide, and mercury vapor and high-pressure sodium lamps; light emitting diode lighting products that produce less heat; digital lighting controller, a temperature monitoring control system; reflectors; and high intensity lighting accessories, as well as plant nutrients and fertilizers. It primarily serves commercial and retail cannabis growers in the medical and adult use recreational markets; distributors; and retailers. Generation Alpha, Inc. markets its products directly; and through distributors to hydroponic retailers, as well as through direct contacts, online email advertising, social media, trade magazine advertising, trade show promotions, and cross-promotional offerings, as well as ecommerce websites. The company was formerly known as Solis Tek Inc. Generation Alpha, Inc. was incorporated in 2007 and is based in Upland, California.

About Performant Healthcare, Inc. – Common Stock

Performant Healthcare, Inc. engages in the provision of technology-enabled audit, recovery, customer care, and related analytics services. Its services help identify improper payments, and in some markets, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients. The company was founded in 1976 and is headquartered in Plantation, FL.