Taboola.com (NASDAQ:TBLA – Get Free Report) and HealthStream (NASDAQ:HSTM – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Taboola.com and HealthStream, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taboola.com | 0 | 0 | 4 | 0 | 3.00 |
| HealthStream | 0 | 2 | 2 | 1 | 2.80 |
Taboola.com currently has a consensus price target of $5.31, suggesting a potential upside of 69.73%. HealthStream has a consensus price target of $31.50, suggesting a potential upside of 0.61%. Given Taboola.com’s stronger consensus rating and higher possible upside, equities analysts plainly believe Taboola.com is more favorable than HealthStream.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Taboola.com | $1.44 billion | 0.63 | -$82.04 million | ($0.10) | -31.30 |
| HealthStream | $279.06 million | 3.41 | $15.21 million | $0.65 | 48.17 |
HealthStream has lower revenue, but higher earnings than Taboola.com. Taboola.com is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 22.4% of Taboola.com shares are owned by insiders. Comparatively, 20.6% of HealthStream shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Taboola.com has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
Profitability
This table compares Taboola.com and HealthStream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taboola.com | -1.96% | -1.68% | -1.04% |
| HealthStream | 6.84% | 5.67% | 3.91% |
Summary
HealthStream beats Taboola.com on 9 of the 15 factors compared between the two stocks.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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.
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