Allscripts Healthcare Solutions Inc (MDRX), Cerner Corporation (CERN), athenahealth, Inc (ATHN): A Fundamental Breakdown of Three Major EHR Companies

A look at the price performance of these three stocks over the same period indicates that although investors are satisfied with Cerner’s solid growth, but they are more enamored with athenahealth’s growth potential, despite its lack of fundamental support.

The Foolish bottom line
Of course, fundamental valuations only tell half the story for these EHR companies. To fully gauge their market value, investors should also consider their future growth prospects.

Looking forward, athenahealth investors should consider its deal with Ascension Health Alliance, which added 2,700 doctors to its EHR service, and the growth of its popular Epocrates medical reference app. Cerner investors should keep an eye on the company’s partnerships with Nuance for clinical documentation improvement and voice-enabled EHR apps. Last but not least, Allscripts’ partnerships with Cisco and CVS, along with its recently updated iPad EHR app, could help it regain some of its lost market share.

With the EHR market becoming more saturated every day, it can be tough to separate the winners from the losers. Although health care IT companies have yet to reach their full market potential, investors should always do their due diligence and measure each company’s financial health against its future growth prospects to find the best long-term investment.

The article A Fundamental Breakdown of 3 Major EHR Companies originally appeared on Fool.com and is written by Leo Sun.

Leo Sun has no position in any stocks mentioned. The Motley Fool recommends athenahealth.

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