Community Health Systems (NYSE: CYH) and HealthStream (NASDAQ:HSTM) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Community Health Systems -3.97% -3.10% -0.22%
HealthStream 2.36% 2.46% 1.79%

Risk and Volatility

Community Health Systems has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Community Health Systems and HealthStream, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Health Systems 3 10 0 0 1.77
HealthStream 0 4 2 0 2.33

Community Health Systems presently has a consensus target price of $5.79, suggesting a potential upside of 35.32%. HealthStream has a consensus target price of $24.40, suggesting a potential upside of 8.98%. Given Community Health Systems’ higher possible upside, equities research analysts clearly believe Community Health Systems is more favorable than HealthStream.

Earnings & Valuation

This table compares Community Health Systems and HealthStream’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Health Systems $18.44 billion 0.03 -$1.72 billion ($5.82) -0.74
HealthStream $225.97 million 3.16 $3.75 million $0.18 124.39

HealthStream has lower revenue, but higher earnings than Community Health Systems. Community Health Systems is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.7% of Community Health Systems shares are owned by institutional investors. Comparatively, 74.4% of HealthStream shares are owned by institutional investors. 4.7% of Community Health Systems shares are owned by insiders. Comparatively, 21.1% of HealthStream shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

HealthStream beats Community Health Systems on 9 of the 13 factors compared between the two stocks.

About Community Health Systems

Community Health Systems, Inc. is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The Company also provides additional outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies.

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.

Receive News & Ratings for Community Health Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Health Systems Inc. and related companies with MarketBeat.com's FREE daily email newsletter.