HealthStream (NASDAQ:HSTM – Get Free Report) and DarioHealth (NASDAQ:DRIO – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Risk & Volatility
HealthStream has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Profitability
This table compares HealthStream and DarioHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HealthStream | 6.25% | 6.37% | 4.37% |
| DarioHealth | -169.87% | -54.81% | -33.36% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HealthStream | $304.06 million | 2.81 | $18.34 million | $0.70 | 39.79 |
| DarioHealth | $22.36 million | 0.58 | -$41.71 million | ($6.13) | -0.22 |
HealthStream has higher revenue and earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for HealthStream and DarioHealth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HealthStream | 0 | 4 | 1 | 0 | 2.20 |
| DarioHealth | 1 | 1 | 3 | 0 | 2.40 |
HealthStream currently has a consensus target price of $36.00, suggesting a potential upside of 29.24%. DarioHealth has a consensus target price of $7.75, suggesting a potential upside of 482.71%. Given DarioHealth’s stronger consensus rating and higher probable upside, analysts plainly believe DarioHealth is more favorable than HealthStream.
Institutional & Insider Ownership
69.6% of HealthStream shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 20.4% of HealthStream shares are held by insiders. Comparatively, 3.5% of DarioHealth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
HealthStream beats DarioHealth on 10 of the 14 factors compared between the two stocks.
About HealthStream
HealthStream, Inc. provides workforce solutions for healthcare organizations, with a focus on helping them educate, develop and manage their employees. Its offerings include online learning and training, talent and performance management, and tools for managing staff credentialing and compliance. The company’s products include the HealthStream Learning Center and solutions delivered through its hStream platform. Hospitals and other healthcare organizations use these services to support workforce education, professional development and operational processes.
About DarioHealth
DarioHealth Corp. is a digital health company that develops technology-enabled solutions for managing chronic conditions. Its platform combines connected medical devices, mobile applications, data analytics and personalized coaching to help individuals monitor and improve their health. The company’s offerings have focused on conditions including diabetes, hypertension, musculoskeletal disorders and behavioral health. Products and services may include connected blood glucose and blood pressure monitoring, digital programs for pain and mobility management, health coaching, educational content and tools that support healthier daily habits.
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