The Motley Fool

2 software shares I’m watching

The Hansen Technologies Limited (ASX: HSN) share price and Pro Medicus Limited (ASX: PME) share price have fallen hard over the past six months.

As can be seen in the following chart, Pro Medicus shares and Hansen Technologies shares have fallen 28% and 31%, respectively.

Source: Google Finance

Source: Google Finance 

Pro Medicus

Pro Medicus is a $460 million company developing medical imaging software. Its products are used by radiologists and doctors to inspect and manipulate images in real time.

Radiology is a highly regulated field of medicine and the imagery used by doctors must be incredibly clear to meet regulatory standards. To give you a sense of just how clear it must be, consider this: When you a take photo with your new smartphone, it may produce a 5 megabyte (Mb) file size. A radiologist’s file could be 2,000 Mb (2Gb). Imagine trying to send that to a friend!  

What makes Pro Medicus incredible is that it can deliver these images to a radiologist’s smartphone with regulatory-approved clarity in just seconds. The doctor can inspect and manipulate the image on the spot. 2D, 3D, or even 4D.

Hansen Technologies

Hansen is a little larger than Pro Medicus, with a market capitalisation of $570 million. It develops software for customer care and billing, like the systems used by call centres and big businesses. By far, Hansen’s largest operation is in ‘billing’, creating applications for companies, such as those in pay television and telecommunications. The company’s software is ingrained with company processes, meaning a lot of its revenue is recurring.

Foolish Takeaway

Despite their recent performance, Hansen and Pro Medicus have performed exceptionally well over the longer-term. Therefore, the recent falls may present a compelling opportunity for savvy investors. I have both of these businesses on my watchlist in 2017.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.