Definitive Healthcare (NASDAQ:DH – Get Free Report) and MSP Recovery (NASDAQ:MSPR – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Insider and Institutional Ownership
98.7% of Definitive Healthcare shares are owned by institutional investors. Comparatively, 3.8% of MSP Recovery shares are owned by institutional investors. 17.1% of Definitive Healthcare shares are owned by company insiders. Comparatively, 50.5% of MSP Recovery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Definitive Healthcare has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.24, indicating that its share price is 324% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $241.52 million | 0.32 | -$138.93 million | ($1.60) | -0.45 |
| MSP Recovery | $9.81 million | 0.00 | -$360.50 million | ($572.83) | N/A |
Definitive Healthcare has higher revenue and earnings than MSP Recovery. Definitive Healthcare is trading at a lower price-to-earnings ratio than MSP Recovery, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Definitive Healthcare and MSP Recovery, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 5 | 0 | 1 | 1.89 |
| MSP Recovery | 1 | 0 | 0 | 0 | 1.00 |
Definitive Healthcare currently has a consensus target price of $1.47, indicating a potential upside of 106.05%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Definitive Healthcare is more favorable than MSP Recovery.
Profitability
This table compares Definitive Healthcare and MSP Recovery’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% |
| MSP Recovery | -7,328.48% | -326.80% | -81.27% |
Summary
Definitive Healthcare beats MSP Recovery on 11 of the 13 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 MSP Recovery
MSP Recovery, Inc. engages in the development of healthcare recoveries and data analytics software. It also focuses on the identification and recoveries of improper payments made by Medicare, Medicaid, and commercial insurance spaces using data and analytics. The company was founded by John H. Ruiz, Frank C. Quesada, and Diana Diaz on July 8, 2014 and is headquartered in Miami, FL.
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