Health Catalyst (NASDAQ:HCAT) vs. Weave Communications (NYSE:WEAV) Critical Analysis

Weave Communications (NYSE:WEAV) and Health Catalyst (NASDAQ:HCAT) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Valuation & Earnings

This table compares Weave Communications and Health Catalyst”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weave Communications	$239.02 million	2.47	-$28.05 million	($0.25)	-29.50
Health Catalyst	$292.25 million	0.45	-$177.97 million	($3.68)	-0.48

Weave Communications has higher earnings, but lower revenue than Health Catalyst. Weave Communications is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Weave Communications and Health Catalyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weave Communications	-7.97%	-21.14%	-8.41%
Health Catalyst	-90.61%	-1.83%	-0.80%

Volatility & Risk

Weave Communications has a beta of 1.68, indicating that its stock price is 68% 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.

Analyst Recommendations

This is a breakdown of recent ratings for Weave Communications and Health Catalyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weave Communications	1	5	2	0	2.12
Health Catalyst	1	7	3	0	2.18

Weave Communications presently has a consensus target price of $7.84, indicating a potential upside of 6.31%. Health Catalyst has a consensus target price of $2.45, indicating a potential upside of 40.00%. Given Health Catalyst’s stronger consensus rating and higher possible upside, analysts plainly believe Health Catalyst is more favorable than Weave Communications.

Insider & Institutional Ownership

86.8% of Weave Communications shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 16.4% of Weave Communications shares are held by insiders. Comparatively, 19.4% of Health Catalyst shares are held 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

Health Catalyst beats Weave Communications on 8 of the 14 factors compared between the two stocks.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

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.