HealthStream (NASDAQ:HSTM – Get Free Report) and Healthcare Triangle (NASDAQ:HCTI – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for HealthStream and Healthcare Triangle, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HealthStream | 0 | 3 | 0 | 0 | 2.00 |
| Healthcare Triangle | 1 | 0 | 0 | 0 | 1.00 |
HealthStream presently has a consensus price target of $27.00, indicating a potential downside of 7.22%. Given HealthStream’s stronger consensus rating and higher probable upside, equities analysts plainly believe HealthStream is more favorable than Healthcare Triangle.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| HealthStream | 6.60% | 6.81% | 4.64% |
| Healthcare Triangle | -66.85% | -125.45% | -36.06% |
Institutional and Insider Ownership
69.6% of HealthStream shares are owned by institutional investors. Comparatively, 0.3% of Healthcare Triangle shares are owned by institutional investors. 20.4% of HealthStream shares are owned by insiders. Comparatively, 0.1% of Healthcare Triangle shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares HealthStream and Healthcare Triangle”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HealthStream | $321.12 million | 2.65 | $18.34 million | $0.72 | 40.42 |
| Healthcare Triangle | $25.67 million | 0.45 | -$9.48 million | ($33.52) | -0.02 |
HealthStream has higher revenue and earnings than Healthcare Triangle. Healthcare Triangle is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
HealthStream has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Healthcare Triangle has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.
Summary
HealthStream beats Healthcare Triangle on 12 of the 13 factors compared between the two stocks.
About HealthStream
HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
About Healthcare Triangle
Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.
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