HealthStream (NASDAQ: HSTM) and Nobilis Health Corp (NYSE:HLTH) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings and Valuation

This table compares HealthStream and Nobilis Health Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HealthStream $238.45 million 3.15 $23.61 million $0.14 168.29
Nobilis Health Corp $321.25 million 0.36 $33.65 million N/A N/A

Nobilis Health Corp has higher revenue and earnings than HealthStream.

Institutional and Insider Ownership

75.9% of HealthStream shares are held by institutional investors. 21.1% of HealthStream shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for HealthStream and Nobilis Health Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthStream 0 3 3 0 2.50
Nobilis Health Corp 0 2 2 0 2.50

HealthStream currently has a consensus target price of $25.17, suggesting a potential upside of 6.82%. Nobilis Health Corp has a consensus target price of $3.10, suggesting a potential upside of 106.67%. Given Nobilis Health Corp’s higher possible upside, analysts clearly believe Nobilis Health Corp is more favorable than HealthStream.

Profitability

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

Net Margins Return on Equity Return on Assets
HealthStream 1.85% 2.27% 1.65%
Nobilis Health Corp N/A N/A N/A

Summary

HealthStream beats Nobilis Health Corp on 8 of the 11 factors compared between the two stocks.

About HealthStream

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 Nobilis Health Corp

Nobilis Health Corp. (Nobilis) owns and manages healthcare facilities in the States of Texas and Arizona, consisting primarily of ambulatory surgery centers (ASCs) and acute-care and surgical hospitals. The Company’s segments include Medical Services, Marketing Services and Corporate. The Medical Services segment owns and manages approximately nine healthcare facilities in Texas and Arizona; over four hospitals, and approximately five ambulatory surgery centers. The Marketing Services segment provides marketing services, patient education services and patient care co-ordination management services. The Company provides care across a range of specialties in its facilities, including orthopedic surgery, podiatric surgery, pain management, gastro-intestinal, gynecology, and general surgery. Many of its surgical patients require additional complementary healthcare services, and its suite of ancillary services, including surgical assist, intraoperative neuromonitoring and anesthesia.

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