Comparing VSee Health (NASDAQ:VSEE) and HealthStream (NASDAQ:HSTM)

HealthStream (NASDAQ:HSTM) and VSee Health (NASDAQ:VSEE) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthStream	$304.06 million	2.86	$18.34 million	$0.72	41.27
VSee Health	$14.46 million	0.39	-$14.71 million	($0.37)	-4.19

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for HealthStream and VSee Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthStream	0	3	0	0	2.00
VSee Health	1	0	0	0	1.00

HealthStream currently has a consensus target price of $27.00, indicating a potential downside of 9.13%. Given HealthStream’s stronger consensus rating and higher possible upside, equities analysts plainly believe HealthStream is more favorable than VSee Health.

Insider & Institutional Ownership

69.6% of HealthStream shares are owned by institutional investors. Comparatively, 1.0% of VSee Health shares are owned by institutional investors. 20.4% of HealthStream shares are owned by insiders. Comparatively, 14.9% of VSee Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares HealthStream and VSee Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthStream	6.60%	6.81%	4.64%
VSee Health	-92.36%	-11,636.34%	-68.62%

Summary

HealthStream beats VSee Health on 12 of the 12 factors compared between the two stocks.

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.

About VSee Health

VSee Health, Inc. is a no-code or low-code software as a service (SaaS) platform that enables clinicians and enterprises to create their telehealth workflows without programming. It engages in providing timely, quality healthcare to patients regardless of geographical barriers. The company is headquartered in Boca Raton, FL.