HealthStream (NASDAQ:HSTM) & Yalla Group (NYSE:YALA) Financial Analysis

HealthStream (NASDAQ:HSTM) and Yalla Group (NYSE:YALA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for HealthStream and Yalla Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthStream 0 3 2 0 2.40
Yalla Group 0 0 1 0 3.00

HealthStream presently has a consensus price target of $36.00, suggesting a potential upside of 43.08%. Yalla Group has a consensus price target of $25.00, suggesting a potential upside of 294.94%. Given Yalla Group’s stronger consensus rating and higher possible upside, analysts clearly believe Yalla Group is more favorable than HealthStream.

Institutional and Insider Ownership

72.2% of HealthStream shares are held by institutional investors. Comparatively, 3.0% of Yalla Group shares are held by institutional investors. 20.4% 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.

Earnings & Valuation

This table compares HealthStream and Yalla Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HealthStream $244.83 million 3.24 $14.09 million $0.23 109.40
Yalla Group $134.93 million 6.75 $3.21 million $0.41 15.44

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

Profitability

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

Net Margins Return on Equity Return on Assets
HealthStream 2.81% 2.11% 1.44%
Yalla Group 28.57% 26.30% 23.78%

Volatility & Risk

HealthStream has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Summary

Yalla Group beats HealthStream on 8 of the 14 factors compared between the two stocks.

About HealthStream

HealthStream, Inc. engages in the provision of services to healthcare organizations. It operates through the following segments: Workforce Solutions and Provider Solutions. The Workforce Solutions segment offers training, certification, assessment, development, and scheduling needs of the healthcare workforce. The Provider Solutions delivers software applications for administering and tracking provider credentialing, privileging, call center, and enrollment activities. The company was founded by Robert A. Frist, Jr. and Jeffery L. McLaren in 1990 and is headquartered in Nashville, TN.

About Yalla Group

Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. The company's platform sells virtual items, as well as provides upgrade services. It also offers group chatting and games services. The company was formerly known as FYXTech Corporatio. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.

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