Weave Communications (NYSE:WEAV – Get Free Report) and HealthStream (NASDAQ:HSTM – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Insider and Institutional Ownership
86.8% of Weave Communications shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 16.4% of Weave Communications shares are owned by company insiders. Comparatively, 20.4% of HealthStream shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Weave Communications and HealthStream, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Weave Communications | 1 | 5 | 2 | 0 | 2.12 |
| HealthStream | 0 | 3 | 0 | 0 | 2.00 |
Profitability
This table compares Weave Communications and HealthStream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Weave Communications | -7.97% | -21.14% | -8.41% |
| HealthStream | 6.60% | 6.81% | 4.64% |
Valuation and Earnings
This table compares Weave Communications and HealthStream”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Weave Communications | $239.02 million | 2.47 | -$28.05 million | ($0.25) | -29.46 |
| HealthStream | $304.06 million | 2.86 | $18.34 million | $0.72 | 41.31 |
HealthStream has higher revenue and earnings than Weave Communications. Weave Communications is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Weave Communications has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.
Summary
HealthStream beats Weave Communications on 9 of the 14 factors compared between the two stocks.
About Weave Communications
Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.
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.
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