Comparing DoorDash (NASDAQ:DASH) and HealthStream (NASDAQ:HSTM)

DoorDash (NASDAQ:DASH) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for DoorDash and HealthStream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoorDash	0	9	25	2	2.81
HealthStream	1	2	0	0	1.67

DoorDash currently has a consensus target price of $259.58, indicating a potential upside of 62.96%. HealthStream has a consensus target price of $24.00, indicating a potential downside of 3.88%. Given DoorDash’s stronger consensus rating and higher possible upside, equities analysts clearly believe DoorDash is more favorable than HealthStream.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoorDash	$13.72 billion	5.06	$935.00 million	$2.10	75.85
HealthStream	$304.06 million	2.40	$18.34 million	$0.67	37.27

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

Profitability

This table compares DoorDash and HealthStream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoorDash	6.29%	9.58%	4.99%
HealthStream	6.39%	6.47%	4.44%

Volatility & Risk

DoorDash has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Insider and Institutional Ownership

90.6% of DoorDash shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 5.8% of DoorDash shares are owned by insiders. Comparatively, 20.4% of HealthStream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

DoorDash beats HealthStream on 13 of the 15 factors compared between the two stocks.

About DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.

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.