KE (NYSE:BEKE) vs. HealthStream (NASDAQ:HSTM) Head-To-Head Review

KE (NYSE:BEKE) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

39.3% of KE shares are held by institutional investors. Comparatively, 69.6% of HealthStream shares are held by institutional investors. 6.8% of KE shares are held by insiders. Comparatively, 20.4% of HealthStream shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares KE and HealthStream”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$13.52 billion	1.44	$428.13 million	$0.42	41.44
HealthStream	$304.06 million	2.74	$18.34 million	$0.67	42.51

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

Analyst Recommendations

This is a summary of current ratings and price targets for KE and HealthStream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	1	6	0	2.86
HealthStream	0	3	0	0	2.00

KE currently has a consensus price target of $23.07, indicating a potential upside of 32.53%. HealthStream has a consensus price target of $24.00, indicating a potential downside of 15.73%. Given KE’s stronger consensus rating and higher possible upside, analysts clearly believe KE is more favorable than HealthStream.

Profitability

This table compares KE and HealthStream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KE	3.77%	5.47%	3.10%
HealthStream	6.39%	6.47%	4.44%

Dividends

KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.3%. HealthStream pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. KE pays out 54.8% of its earnings in the form of a dividend. HealthStream pays out 20.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HealthStream has raised its dividend for 2 consecutive years.

Risk & Volatility

KE has a beta of -0.33, meaning that its stock price is 133% less volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Summary

HealthStream beats KE on 11 of the 17 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

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.