Metropolitan Health Networks, Inc. (MDF)

Metropolitan Health Networks, Inc. provides comprehensive health care services to people with Medicare in Florida. The company currently cares for approximately 35,000 customers in 18 counties in South and Central Florida. Metropolitan Health’s team of physicians, professionals, and associates are committed to serving customers with the highest standards of medical treatment and personal service. The company aims to always exceed expectations.

For decades, Florida has been a highly attractive and rapidly growing market. In 2005, the state’s population of those 65 and older was 3.0 million and was forecasted to increase to 3.4 million by 2010 and to 4.7 million by 2020. Florida is also the second largest Medicare population in the U.S. with an estimated 3.2 million eligible beneficiaries. In addition to rising demand, the company intends to continue growing by investing in the development of healthcare provider networks in other counties.

The company has outstanding financial stability with a debt/equity ratio of just 0.01. As of last report, the company held $9.6 million in cash and cash equivalents, and $80.7 million in other assets. Total current and long-term liabilities were reported at $7.2 million. Metropolitan Health also boasts a respectable 35.3% Return on Assets (ROA) and 39.1% Return on Equity (ROE).

Generating $374.6 million in sales, the company trades at a market cap of only $185.42 million. Insiders own approximately 23% of shares outstanding while institutions hold 53.30%. Investor sentiment is almost entirely bullish with less than 5% of the float sold short. Currently, one analyst rates the company a “Strong Buy”, another rates it a “Buy”, and one has issued a “Hold” recommendation.

Key statistics (9/6/11):

Market cap: $185.42 Million
P/E Ratio: 7.2 versus industry average of 10.8
P/S Ratio: 0.50 versus industry average of 0.45
Price/Cash Flow Ratio: 6.70 versus industry average of 8.50

Debt/Equity Ratio: 0.01 versus industry average of 0.64
Current Ratio: 10.5 versus industry average of 0.4
Quick Ratio: 12.7 versus industry average of 0.1
Book Value/Share: $2.01 versus current market price of $4.51

Return on Equity: 39.1% versus industry average of 21.9%
Return on Assets: 35.3% versus industry average of 7.5%
Return on Capital: 38.7% versus industry average of 5.4%
5-Year average ROE: 28.1% versus industry average of 20.9%

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Ness Technologies, Inc. (NSTC)

Ness Technologies, Inc. provides Information Technology (IT) business services and solutions to more than 500 clients in the commercial, industrial and government sectors. The company is known for its specialized expertise in software product engineering; system integration, application development and consulting; and software distribution. The company delivers its services and solutions through offices located in 18 different countries with a work force of approximately 8,000 experienced professionals.

Ness Technologies has formed strategic partnerships with many leading global software and infrastructure vendors to capitalize on a wide array of technologies and innovation. The company continuously evaluates and pursues other potential partners to deliver the most effective and advanced solutions to its clients. By achieving the highest level of certification with many of its partners, Ness Technologies has been able to leverage its early access to new product offerings to influence the development of new products and offerings.

Despite economic turbulence, the company’s balance sheet remains strong. As of last report, the company held $35.0 million in cash and cash equivalents, and $627.5 million in other assets. Total current and long-term liabilities were reported at $332.4 million. Stockholders’ equity totals approximately $330.2 million providing a book value per share of $8.69, which is significantly higher than the current market price.

For the second quarter of 2010, Ness Technologies reported revenues of $139.7 million, an increase of 10% from last year. The company said it continues to expect top line revenue growth and margin expansion throughout the rest of the year, with third quarter results in line with second quarter results, and fourth quarter results significantly better than third quarter results.

Currently, 2.16% of the shares outstanding are held by insiders and 68.50% are held by institutions. Two analysts believe the company is a “Strong Buy, two believe it’s a “Buy”, and one believes it’s a “Hold”. Next year analysts expect earnings per share of $0.57 compared to this year’s $0.43. Next year’s revenues are anticipated to total $604.4 million versus this year’s $565.5 million.

Key statistics (8/26/10):

Market cap: $161.5 Million
P/S Ratio: 0.32 versus industry average of 1.93
5-Year Avg. Sales Growth of 12.44% versus industry average of 14.81%
5-Year Avg. Gross Margin of 27.6% versus industry average of 26.8%

Debt/Equity Ratio: 0.24 versus industry average of 0.25
Current Ratio: 1.3 versus industry average of 2.7
Quick Ratio: 1.3 versus industry average of 2.7
Book Value/Share: $8.69 versus current market price of $4.25

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