Financial Survey: Health In Tech (NASDAQ:HIT) versus HealthStream (NASDAQ:HSTM)

HealthStream (NASDAQ:HSTM) and Health In Tech (NASDAQ:HIT) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

69.6% of HealthStream shares are owned by institutional investors. 20.4% of HealthStream shares are owned by company insiders. Comparatively, 71.0% of Health In Tech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

HealthStream has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Health In Tech has a beta of 3.02, meaning that its share price is 202% more volatile than the S&P 500.

Profitability

This table compares HealthStream and Health In Tech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthStream	6.25%	6.37%	4.37%
Health In Tech	N/A	N/A	N/A

Valuation & Earnings

This table compares HealthStream and Health In Tech”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthStream	$304.06 million	2.84	$18.34 million	$0.72	41.11
Health In Tech	$32.83 million	1.15	-$4.59 million	($0.07)	-8.23

HealthStream has higher revenue and earnings than Health In Tech. Health In Tech is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for HealthStream and Health In Tech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthStream	0	4	1	0	2.20
Health In Tech	1	0	1	1	2.67

HealthStream currently has a consensus price target of $36.00, suggesting a potential upside of 21.62%. Health In Tech has a consensus price target of $3.50, suggesting a potential upside of 507.22%. Given Health In Tech’s stronger consensus rating and higher possible upside, analysts plainly believe Health In Tech is more favorable than HealthStream.

Summary

HealthStream beats Health In Tech on 9 of the 14 factors compared between the two stocks.

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.

About Health In Tech

Health in Tech, Inc. engages in the provision of insurance technology platforms which offer a marketplace of processes in the healthcare industry. Its services include Stone Mountain Risk, eDIYBS, HI Card, HI Performance Network, and Ancillary Products. The company was founded by Tim Johnson in 2014 and is headquartered in Stuart, FL.