Financial Survey: Definitive Healthcare (NASDAQ:DH) & Health Catalyst (NASDAQ:HCAT)

Health Catalyst (NASDAQ:HCAT) and Definitive Healthcare (NASDAQ:DH) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Health Catalyst and Definitive Healthcare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Health Catalyst	1	7	3	0	2.18
Definitive Healthcare	3	6	0	1	1.90

Health Catalyst presently has a consensus price target of $2.45, indicating a potential upside of 38.42%. Definitive Healthcare has a consensus price target of $1.47, indicating a potential upside of 60.76%. Given Definitive Healthcare’s higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than Health Catalyst.

Insider and Institutional Ownership

85.0% of Health Catalyst shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 19.4% of Health Catalyst shares are held by insiders. Comparatively, 17.1% of Definitive Healthcare shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Health Catalyst and Definitive Healthcare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Health Catalyst	$311.14 million	0.43	-$177.97 million	($3.68)	-0.48
Definitive Healthcare	$241.52 million	0.40	-$138.93 million	($1.60)	-0.57

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

Volatility and Risk

Health Catalyst has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Profitability

This table compares Health Catalyst and Definitive Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Health Catalyst	-90.61%	-1.83%	-0.80%
Definitive Healthcare	-72.28%	3.55%	1.63%

Summary

Definitive Healthcare beats Health Catalyst on 8 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 Definitive Healthcare

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.