Definitive Healthcare (NASDAQ:DH) and Waystar (NASDAQ:WAY) Financial Survey

Definitive Healthcare (NASDAQ:DH) and Waystar (NASDAQ:WAY) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

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	$227.31 million	0.62	-$138.93 million	($1.50)	-0.88
Waystar	$1.26 billion	4.22	$112.09 million	$0.69	40.13

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations 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	0	1.67
Waystar	0	4	17	2	2.91

Definitive Healthcare currently has a consensus price target of $1.47, suggesting a potential upside of 11.90%. Waystar has a consensus price target of $35.23, suggesting a potential upside of 27.22%. Given Waystar’s stronger consensus rating and higher possible upside, analysts plainly believe Waystar is more favorable than Definitive Healthcare.

Risk & Volatility

Definitive Healthcare has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

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	-69.18%	4.35%	1.84%
Waystar	10.70%	6.91%	4.67%

Institutional and Insider Ownership

98.7% of Definitive Healthcare shares are owned by institutional investors. 17.1% of Definitive Healthcare shares are owned by insiders. Comparatively, 3.5% of Waystar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Waystar beats Definitive Healthcare on 12 of the 15 factors compared between the two stocks.

About Definitive Healthcare

Definitive Healthcare Corp. (NASDAQ: DH) provides data, analytics and commercial intelligence solutions for the healthcare industry. Its platform is designed to help organizations understand healthcare markets, identify business opportunities and make data-driven decisions. The company serves pharmaceutical and biotechnology companies, medical device manufacturers, healthcare providers, hospitals and health systems, and other healthcare services organizations. Its offerings include information on healthcare providers and organizations, market intelligence, sales and marketing analytics, clinical trial insights, and tools that support commercial planning, market access and customer engagement.

About Waystar

Waystar provides cloud-based healthcare payment and revenue cycle management software. Its platform helps healthcare organizations manage administrative and financial processes, including claims submission, payment processing, patient billing, and revenue collection. The company’s products support providers in identifying and addressing claim denials, checking patient eligibility, estimating costs, collecting payments, and analyzing revenue cycle performance. Waystar serves a range of healthcare organizations, including hospitals, health systems, physician groups, and other medical providers, primarily in the United States.