Waystar (NASDAQ:WAY – Get Free Report) and Definitive Healthcare (NASDAQ:DH – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Earnings & Valuation
This table compares Waystar and Definitive Healthcare”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Waystar | $1.10 billion | 5.05 | $112.09 million | $0.70 | 41.26 |
| Definitive Healthcare | $241.52 million | 0.50 | -$138.93 million | ($1.60) | -0.71 |
Risk and Volatility
Waystar has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Waystar and Definitive Healthcare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Waystar | 0 | 4 | 17 | 2 | 2.91 |
| Definitive Healthcare | 3 | 6 | 0 | 1 | 1.90 |
Waystar currently has a consensus price target of $35.23, indicating a potential upside of 21.98%. Definitive Healthcare has a consensus price target of $1.47, indicating a potential upside of 30.21%. Given Definitive Healthcare’s higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than Waystar.
Institutional & Insider Ownership
98.7% of Definitive Healthcare shares are owned by institutional investors. 3.5% of Waystar shares are owned by insiders. Comparatively, 17.1% of Definitive Healthcare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Waystar and Definitive Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Waystar | 10.70% | 6.91% | 4.67% |
| Definitive Healthcare | -72.28% | 3.55% | 1.63% |
Summary
Waystar beats Definitive Healthcare on 11 of the 15 factors compared between the two stocks.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, 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.
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