Critical Review: Health Catalyst (NASDAQ:HCAT) and Standard BioTools (NASDAQ:LAB)

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

Profitability

This table compares Health Catalyst and Standard BioTools’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Health Catalyst	-87.69%	-3.52%	-1.77%
Standard BioTools	73.46%	-8.18%	-6.43%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Health Catalyst	$311.14 million	0.47	-$177.97 million	($3.72)	-0.54
Standard BioTools	$86.26 million	3.74	-$74.90 million	$0.20	4.13

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

Insider & Institutional Ownership

85.0% of Health Catalyst shares are held by institutional investors. Comparatively, 53.7% of Standard BioTools shares are held by institutional investors. 19.4% of Health Catalyst shares are held by company insiders. Comparatively, 26.8% of Standard BioTools shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Health Catalyst has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Standard BioTools has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Health Catalyst and Standard BioTools, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Health Catalyst	1	8	4	0	2.23
Standard BioTools	1	2	0	0	1.67

Health Catalyst presently has a consensus price target of $2.84, suggesting a potential upside of 42.40%. Standard BioTools has a consensus price target of $1.35, suggesting a potential upside of 63.44%. Given Standard BioTools’ higher probable upside, analysts clearly believe Standard BioTools is more favorable than Health Catalyst.

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.

About Standard BioTools

Standard BioTools Inc., together with its subsidiaries, provides instruments, consumables, reagents, and software services for researchers and clinical laboratories in the Americas, Europe, the Middle East, Africa, and the Asia pacific. It operates through two segments: Proteomics and Genomics. The company offers analytical systems, such as CyTOF XT System, a CyTOF XT mass cytometry system performs automated high-parameter single-cell analysis using antibodies conjugated to metal isotopes; and Hyperion XTi imaging system, a spatial biology instrument. It also provides genomics, such as X9 Real-Time PCR System, a real-time PCR analytical instrument including pre-processing steps for microfluidics-based workflows using (integrated fluidic circuit) IFCs; and IFC Controllers, a controller which is designed to work with IFC formats. In addition, the company offers analytical instruments comprising Biomark HD system, a real-time PCR analytical instrument for microfluidics-based workflows using prepared IFCs. It sells its products to academic research institutions; translational research and medicine centers; cancer centers; clinical research laboratories; biopharmaceutical, biotechnology, and plant and animal research companies; and contract research organizations. It has license agreements with California Institute of Technology, Harvard University, and Caliper Life Sciences, Inc. The company was formerly known as Fluidigm Corporation and changed its name to Standard BioTools Inc. in April 2022. Fluidigm Corporation was incorporated in 1999 and is headquartered in South San Francisco, California.