Health Catalyst (NASDAQ:HCAT – Get Free Report) and HeartSciences (NASDAQ:HSCS – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Insider and Institutional Ownership
85.0% of Health Catalyst shares are owned by institutional investors. Comparatively, 17.2% of HeartSciences shares are owned by institutional investors. 2.6% of Health Catalyst shares are owned by company insiders. Comparatively, 1.8% of HeartSciences shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Health Catalyst and HeartSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health Catalyst | -34.05% | -6.67% | -3.21% |
| HeartSciences | N/A | -388.12% | -161.65% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health Catalyst | $306.58 million | 0.56 | -$69.50 million | ($1.59) | -1.53 |
| HeartSciences | N/A | N/A | -$8.77 million | ($6.88) | -0.32 |
HeartSciences has lower revenue, but higher earnings than Health Catalyst. Health Catalyst is trading at a lower price-to-earnings ratio than HeartSciences, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Health Catalyst has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, HeartSciences has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Health Catalyst and HeartSciences, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health Catalyst | 1 | 8 | 5 | 0 | 2.29 |
| HeartSciences | 1 | 0 | 1 | 0 | 2.00 |
Health Catalyst presently has a consensus target price of $4.36, suggesting a potential upside of 79.57%. HeartSciences has a consensus target price of $9.00, suggesting a potential upside of 310.96%. Given HeartSciences’ higher possible upside, analysts clearly believe HeartSciences is more favorable than Health Catalyst.
Summary
Health Catalyst beats HeartSciences on 8 of the 13 factors compared between the two stocks.
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.
About HeartSciences
Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.
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