HealthStream (NASDAQ: HSTM) and DaVita HealthCare Partners (NYSE:DVA) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Earnings and Valuation
This table compares HealthStream and DaVita HealthCare Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HealthStream||$238.45 million||3.06||$23.61 million||$0.14||163.64|
|DaVita HealthCare Partners||$15.01 billion||0.72||$2.45 billion||$6.50||8.70|
DaVita HealthCare Partners has higher revenue and earnings than HealthStream. DaVita HealthCare Partners is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
This table compares HealthStream and DaVita HealthCare Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DaVita HealthCare Partners||8.68%||14.02%||3.78%|
This is a summary of current ratings and target prices for HealthStream and DaVita HealthCare Partners, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DaVita HealthCare Partners||1||6||2||0||2.11|
HealthStream presently has a consensus target price of $26.00, suggesting a potential upside of 13.49%. DaVita HealthCare Partners has a consensus target price of $67.88, suggesting a potential upside of 20.03%. Given DaVita HealthCare Partners’ higher probable upside, analysts clearly believe DaVita HealthCare Partners is more favorable than HealthStream.
Volatility & Risk
HealthStream has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, DaVita HealthCare Partners has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Insider and Institutional Ownership
76.8% of HealthStream shares are owned by institutional investors. Comparatively, 84.3% of DaVita HealthCare Partners shares are owned by institutional investors. 21.1% of HealthStream shares are owned by insiders. Comparatively, 2.1% of DaVita HealthCare Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
DaVita HealthCare Partners beats HealthStream on 8 of the 14 factors compared between the two stocks.
HealthStream, Inc. (HealthStream) provides workforce, patient experience and provider solutions for healthcare organizations. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions and HealthStream Provider Solutions. HealthStream’s products and services are organized into three segments: Workforce Solutions, Patient Experience Solutions, and Provider Solutions. HealthStream’s solutions are provided to a range of customers within the healthcare industry across the continuum of care. Delivered primarily as Software-as-a-Service (SaaS), the Company’s solutions focus on challenges facing the healthcare workforce and healthcare organizations, including the need to manage, retain, engage and develop healthcare workforce talent; meet compliance requirements; manage ongoing medical staff credentialing and privileging processes, and deliver patient experiences of care in healthcare organizations.
About DaVita HealthCare Partners
DaVita Inc., formerly DaVita HealthCare Partners Inc., operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support. Its DMG division is a patient- and physician-focused integrated healthcare delivery and management company that provides medical services to members through capitation contracts. Its segments include U.S. dialysis and related lab services, DMG, and Other-Ancillary services and strategic initiatives. Its U.S. dialysis and related lab services line of business provide kidney dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2016, it had operated or provided administrative services to 154 outpatient dialysis centers.
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