Aerohive Networks (HIVE) & Streamline Health Solutions (STRM) Critical Review

Aerohive Networks (NASDAQ: STRM) and Streamline Health Solutions (NASDAQ:STRM) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Aerohive Networks and Streamline Health Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerohive Networks -13.41% -94.49% -14.91%
Streamline Health Solutions -6.59% -16.41% -4.44%



Analyst Ratings

This is a summary of current ratings and recommmendations for Aerohive Networks and Streamline Health Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerohive Networks 0 1 1 0 2.50
Streamline Health Solutions 0 0 0 0 N/A

Aerohive Networks currently has a consensus price target of $5.25, indicating a potential upside of 23.82%. Given Aerohive Networks’ higher possible upside, research analysts plainly believe Aerohive Networks is more favorable than Streamline Health Solutions.

Volatility & Risk

Aerohive Networks has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Streamline Health Solutions has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500.

Earnings & Valuation

This table compares Aerohive Networks and Streamline Health Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerohive Networks $152.90 million 1.53 -$22.92 million ($0.41) -10.34
Streamline Health Solutions $24.34 million 1.03 -$3.09 million ($0.16) -7.81

Streamline Health Solutions has lower revenue, but higher earnings than Aerohive Networks. Aerohive Networks is trading at a lower price-to-earnings ratio than Streamline Health Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

46.9% of Aerohive Networks shares are held by institutional investors. Comparatively, 37.8% of Streamline Health Solutions shares are held by institutional investors. 26.1% of Aerohive Networks shares are held by insiders. Comparatively, 26.1% of Streamline Health Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Aerohive Networks beats Streamline Health Solutions on 7 of the 13 factors compared between the two stocks.

About Aerohive Networks

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager NG, a network management application that features an updated user, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, healthcare, and healthcare through a network of authorized value-added resellers, value-added distributors, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

About Streamline Health Solutions

Streamline Health Solutions, Inc. provides health information technology solutions and services for hospitals and health systems in the United States and Canada. It provides software-based solutions and auditing services, which captures, aggregates, and translates structured and unstructured data to deliver predictive insights to its clients. The company offers health information management, coding, and clinical documentation improvement (CDI) solutions, which include cloud-based software solutions, such as content management, release of information, computer-assisted coding, CDI, abstracting, and physician query; and eValuator, a cloud-based software as a service coding analysis platform. It also provides financial management solutions, including accounts receivable management, denials management, claims processing, spend management, and audit management; patient care solutions that enable healthcare providers to enhance their patient care; and custom integration, training, electronic image conversion, audit, and database monitoring services. The company sells its solutions and services through direct sales force and reseller partnerships. Streamline Health Solutions, Inc. was founded in 1989 and is based in Atlanta, Georgia.

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