Health Catalyst (NASDAQ:HCAT) & HeartSciences (NASDAQ:HSCS) Head-To-Head Analysis

HeartSciences (NASDAQ:HSCS) and Health Catalyst (NASDAQ:HCAT) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares HeartSciences and Health Catalyst”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartSciences	N/A	N/A	-$8.77 million	($6.88)	-0.32
Health Catalyst	$306.58 million	0.56	-$69.50 million	($1.59)	-1.53

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

Profitability

This table compares HeartSciences and Health Catalyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartSciences	N/A	-388.12%	-161.65%
Health Catalyst	-34.05%	-6.67%	-3.21%

Institutional and Insider Ownership

17.2% of HeartSciences shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 1.8% of HeartSciences shares are held by company insiders. Comparatively, 2.6% of Health Catalyst shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for HeartSciences and Health Catalyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartSciences	1	0	1	0	2.00
Health Catalyst	1	8	5	0	2.29

HeartSciences currently has a consensus target price of $9.00, suggesting a potential upside of 310.96%. Health Catalyst has a consensus target price of $4.36, suggesting a potential upside of 79.57%. Given HeartSciences’ higher probable upside, research analysts clearly believe HeartSciences is more favorable than Health Catalyst.

Volatility & Risk

HeartSciences has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Summary

Health Catalyst beats HeartSciences on 8 of the 13 factors compared between the two stocks.

About HeartSciences

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.

About Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.