Definitive Healthcare (NASDAQ:DH – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a summary of recent ratings and price targets for Definitive Healthcare and Health Catalyst, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 6 | 0 | 1 | 1.90 |
| Health Catalyst | 1 | 7 | 3 | 0 | 2.18 |
Definitive Healthcare presently has a consensus price target of $1.47, indicating a potential upside of 61.34%. Health Catalyst has a consensus price target of $2.45, indicating a potential upside of 41.62%. Given Definitive Healthcare’s higher possible upside, research analysts clearly believe Definitive Healthcare is more favorable than Health Catalyst.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $241.52 million | 0.40 | -$138.93 million | ($1.60) | -0.57 |
| Health Catalyst | $311.14 million | 0.42 | -$177.97 million | ($3.68) | -0.47 |
Definitive Healthcare has higher earnings, but lower revenue than Health Catalyst. Definitive Healthcare is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.7% of Definitive Healthcare shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 17.1% of Definitive Healthcare shares are owned by insiders. Comparatively, 19.4% of Health Catalyst shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Definitive Healthcare and Health Catalyst’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% |
| Health Catalyst | -90.61% | -1.83% | -0.80% |
Volatility and Risk
Definitive Healthcare has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Summary
Definitive Healthcare beats Health Catalyst on 8 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 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.
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