Head-To-Head Contrast: TruBridge (NASDAQ:TBRG) vs. Thoughtworks (NASDAQ:TWKS)

Thoughtworks (NASDAQ:TWKS) and TruBridge (NASDAQ:TBRG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Insider and Institutional Ownership

32.8% of Thoughtworks shares are owned by institutional investors. Comparatively, 88.6% of TruBridge shares are owned by institutional investors. 2.3% of Thoughtworks shares are owned by insiders. Comparatively, 3.6% of TruBridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Thoughtworks has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, TruBridge has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Thoughtworks and TruBridge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thoughtworks	1	7	1	0	2.00
TruBridge	0	2	2	0	2.50

Thoughtworks currently has a consensus price target of $4.18, indicating a potential downside of 6.60%. TruBridge has a consensus price target of $14.50, indicating a potential downside of 19.85%. Given Thoughtworks’ higher probable upside, equities analysts plainly believe Thoughtworks is more favorable than TruBridge.

Profitability

This table compares Thoughtworks and TruBridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thoughtworks	-9.45%	-5.34%	-3.13%
TruBridge	-17.72%	1.78%	0.78%

Earnings & Valuation

This table compares Thoughtworks and TruBridge”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thoughtworks	$1.03 billion	1.40	-$68.66 million	($0.30)	-14.90
TruBridge	$337.67 million	0.80	-$44.76 million	($4.09)	-4.42

TruBridge has lower revenue, but higher earnings than Thoughtworks. Thoughtworks is trading at a lower price-to-earnings ratio than TruBridge, indicating that it is currently the more affordable of the two stocks.

Summary

TruBridge beats Thoughtworks on 8 of the 14 factors compared between the two stocks.

About Thoughtworks

Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company’s consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training; and DAMO managed services. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was incorporated in 1993 and is headquartered in Chicago, Illinois. Thoughtworks Holding, Inc. operates as a subsidiary of Turing EquityCo II L.P.

About TruBridge

TruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in three segments: Revenue Cycle Management (RCM), Electronic Health Record (HER), and Patient Engagement. It focuses on providing RCM solutions for care settings, regardless of primary healthcare information solutions provider along with business management, consulting, managed IT services, and analytics and business intelligence. The company provides acute care solutions and related services for community hospitals, and physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimates eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management; and offers RCM services, such as accounts receivable management, private pay service, medical coding, revenue cycle consulting, and other additional insurance and patient billing services. Further, it offers consulting and business management services; managed IT services; encoder solutions; patient management; financial accounting; clinical; patient care; and enterprise applications. Additionally, it offers TruBridge HER platform, including total system support, national client conference, continuing education, software releases, hardware replacement, cloud electronic health record, forms and supplies, and public cloud infrastructure services; post-acute care software systems, and support and maintenance services; and InstantPHR, an interactive portal and CHBase which funnels data from multiple sources into one platform. The company was formerly known as Computer Programs and Systems, Inc. and changed its name to TruBridge, Inc. in March 2024. TruBridge, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.