Definitive Healthcare (NASDAQ:DH – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Definitive Healthcare and Waystar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 6 | 0 | 1 | 1.90 |
| Waystar | 0 | 4 | 17 | 2 | 2.91 |
Definitive Healthcare presently has a consensus price target of $1.47, indicating a potential upside of 30.21%. Waystar has a consensus price target of $35.23, indicating a potential upside of 21.98%. Given Definitive Healthcare’s higher possible upside, equities analysts clearly believe Definitive Healthcare is more favorable than Waystar.
Valuation & Earnings
This table compares Definitive Healthcare and Waystar”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $241.52 million | 0.50 | -$138.93 million | ($1.60) | -0.71 |
| Waystar | $1.10 billion | 5.05 | $112.09 million | $0.70 | 41.26 |
Waystar has higher revenue and earnings than Definitive Healthcare. Definitive Healthcare is trading at a lower price-to-earnings ratio than Waystar, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.7% of Definitive Healthcare shares are held by institutional investors. 17.1% of Definitive Healthcare shares are held by company insiders. Comparatively, 3.5% of Waystar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Definitive Healthcare and Waystar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -72.28% | 3.55% | 1.63% |
| Waystar | 10.70% | 6.91% | 4.67% |
Volatility & Risk
Definitive Healthcare has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.
Summary
Waystar beats Definitive Healthcare on 11 of the 15 factors compared between the two stocks.
About Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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