Comparing HealthStream (NASDAQ:HSTM) and CompuGroup Medical SE & Co. KGaA (OTCMKTS:CMPVF)

CompuGroup Medical SE & Co. KGaA (OTCMKTS:CMPVF) and HealthStream (NASDAQ:HSTM) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Profitability

This table compares CompuGroup Medical SE & Co. KGaA and HealthStream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompuGroup Medical SE & Co. KGaA	N/A	N/A	N/A
HealthStream	6.39%	6.47%	4.44%

Dividends

CompuGroup Medical SE & Co. KGaA pays an annual dividend of C$0.26 per share and has a dividend yield of 0.8%. HealthStream pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. CompuGroup Medical SE & Co. KGaA pays out 46.6% 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 increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

24.3% of CompuGroup Medical SE & Co. KGaA shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 20.4% of HealthStream shares are owned 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 breakdown of current ratings for CompuGroup Medical SE & Co. KGaA and HealthStream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompuGroup Medical SE & Co. KGaA	0	0	0	0	0.00
HealthStream	0	3	0	0	2.00

HealthStream has a consensus price target of $27.00, suggesting a potential downside of 4.69%. Given HealthStream’s stronger consensus rating and higher possible upside, analysts plainly believe HealthStream is more favorable than CompuGroup Medical SE & Co. KGaA.

Earnings & Valuation

This table compares CompuGroup Medical SE & Co. KGaA and HealthStream”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompuGroup Medical SE & Co. KGaA	N/A	N/A	N/A	C$0.56	59.70
HealthStream	$311.78 million	2.65	$18.34 million	$0.67	42.28

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

Summary

HealthStream beats CompuGroup Medical SE & Co. KGaA on 11 of the 13 factors compared between the two stocks.

About CompuGroup Medical SE & Co. KGaA

CompuGroup Medical SE & Co. KGaA provides e-health services worldwide. It operates through Ambulatory Information Systems, Hospital Information Systems, Consumer and Health Management Information Systems, and Pharmacy Information Systems segments. The Ambulatory Information Systems segment develops and sells practice management software for registered physicians, medical care centers, and physician networks; offers supplementary app, internet, and intranet solutions; and delivers solutions for medical facilities, such as medica; care centers and practice associations. The Hospital Information Systems segment develop and sells of clinical and administrative solutions for inpatient sector; provides software solutions for administration, planning and provision of care in outpatient and inpatient medical facilities; and healthcare services to acute care hospitals, rehabilitation centers, welfare institutions, multi-location hospital networks, healthcare regions, regional care organizations, medical laboratories, and radiologists. The Consumer and Health Management Information Systems segment provides software interfaces for data exchange, portals for retrieving data from the German outpatient healthcare market, medical decision support tools, medication and treatment databases for healthcare service providers, solutions for the insurance industry, and digital healthcare applications, patient portals, and mobile apps; and operates telematics infrastructure business, that offers secure links, as well as security solutions for service providers. The Pharmacy Information Systems segment develop and sell administrative and billing related software applications, including procuring and shipping, managing and controlling inventory, planning, performing, and monitoring retail activities for pharmacies. The company was founded in 1987 and is headquartered in Koblenz, Germany.

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.