Health Catalyst (NASDAQ:HCAT – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility & Risk
Health Catalyst has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Health Catalyst and iRhythm Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health Catalyst | 1 | 8 | 5 | 0 | 2.29 |
| iRhythm Technologies | 1 | 1 | 11 | 2 | 2.93 |
Institutional & Insider Ownership
85.0% of Health Catalyst shares are held by institutional investors. 2.6% of Health Catalyst shares are held by insiders. Comparatively, 1.1% of iRhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Health Catalyst and iRhythm Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health Catalyst | $306.58 million | 0.41 | -$69.50 million | ($1.59) | -1.13 |
| iRhythm Technologies | $747.14 million | 6.51 | -$113.29 million | ($1.61) | -93.76 |
Health Catalyst has higher earnings, but lower revenue than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Health Catalyst and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health Catalyst | -34.05% | -6.67% | -3.21% |
| iRhythm Technologies | -5.96% | -31.44% | -3.40% |
Summary
Health Catalyst beats iRhythm Technologies on 9 of the 15 factors compared between the two stocks.
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 iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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