Contrasting HealthStream (NASDAQ:HSTM) & Health Catalyst (NASDAQ:HCAT)

HealthStream (NASDAQ:HSTM) and Health Catalyst (NASDAQ:HCAT) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

72.8% of HealthStream shares are owned by institutional investors. 20.4% of HealthStream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for HealthStream and Health Catalyst, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthStream 0 2 0 0 2.00
Health Catalyst 0 0 8 0 3.00

HealthStream currently has a consensus price target of $26.00, suggesting a potential downside of 0.61%. Health Catalyst has a consensus price target of $51.29, suggesting a potential upside of 76.85%. Given Health Catalyst’s stronger consensus rating and higher possible upside, analysts plainly believe Health Catalyst is more favorable than HealthStream.

Valuation & Earnings

This table compares HealthStream and Health Catalyst’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HealthStream $231.62 million 3.66 $32.22 million $0.43 60.84
Health Catalyst N/A N/A N/A N/A N/A

HealthStream has higher revenue and earnings than Health Catalyst.

Profitability

This table compares HealthStream and Health Catalyst’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HealthStream 5.71% 4.22% 2.99%
Health Catalyst N/A N/A N/A

Summary

HealthStream beats Health Catalyst on 6 of the 9 factors compared between the two stocks.

HealthStream Company Profile

HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States. It operates through two segments, Workforce Solutions and Provider Solutions. The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the training, certification, assessment, development, clinical development, talent management, performance appraisal, and other needs, as well as training, implementation, and account management services for the healthcare community. It also provides applications for recruiting and applicant tracking, learning, performance appraisal, compensation management, succession planning, competency management, disclosure management, clinical development, simulation-based education, and industry-sponsored training. In addition, the company offers Verity, a SaaS-based credentialing, privileging, and enrollment solution. It provides its solutions to private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies. The company was founded in 1990 and is headquartered in Nashville, Tennessee.

Health Catalyst Company Profile

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations. Its products include analytics platform, accountable care and financial, benchmarking and comparative analytics, care management and population health, clinical analytics, operations and performance management, patient safety, and services. The company is headquartered in Salt Lake City, Utah.

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