Alphabet Inc Class A (NASDAQ: HSTM) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Volatility and Risk
Alphabet Inc Class A has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.
This table compares Alphabet Inc Class A and HealthStream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alphabet Inc Class A||13.16%||18.24%||14.32%|
Insider & Institutional Ownership
33.5% of Alphabet Inc Class A shares are held by institutional investors. Comparatively, 69.2% of HealthStream shares are held by institutional investors. 13.2% of Alphabet Inc Class A shares are held by insiders. Comparatively, 20.6% of HealthStream shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Alphabet Inc Class A and HealthStream’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alphabet Inc Class A||$110.86 billion||7.68||$12.66 billion||$32.05||38.19|
|HealthStream||$247.66 million||3.94||$10.00 million||$0.27||111.89|
Alphabet Inc Class A has higher revenue and earnings than HealthStream. Alphabet Inc Class A is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Alphabet Inc Class A and HealthStream, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alphabet Inc Class A||0||4||31||0||2.89|
Alphabet Inc Class A presently has a consensus price target of $1,308.01, suggesting a potential upside of 6.86%. HealthStream has a consensus price target of $26.20, suggesting a potential downside of 13.27%. Given Alphabet Inc Class A’s stronger consensus rating and higher possible upside, analysts plainly believe Alphabet Inc Class A is more favorable than HealthStream.
Alphabet Inc Class A beats HealthStream on 10 of the 14 factors compared between the two stocks.
Alphabet Inc Class A Company Profile
Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
HealthStream Company Profile
HealthStream, Inc. provides workforce and provider solutions to the healthcare organizations in the United States. It operates in HealthStream Workforce Solutions and HealthStream Provider Solutions segments. The company offers workforce development solutions comprising software-as-a-service (SaaS) and subscription-based products to meet talent management, training, certification, competency assessment, performance appraisal, and development needs, as well as training, implementation, and account management services. It also provides applications for recruiting and applicant tracking; learning; performance appraisal; compensation management; succession planning; competency management; credentialing and privileging; provider enrollment; disclosure management; clinical development; simulation-based education; and industry-sponsored training. In addition, the company offers EchoCredentialing, a platform that manages medical staff credentialing and privileging processes; EchoOneApp, an enrollment platform; and EchoAccess, a platform that supports hospital call centers. Further, it provides Verity, a SaaS-based credentialing, privileging, and enrollment solution. The company markets its products and services to healthcare industry, including private, not for profit, and government entities, as well as pharmaceutical and medical device companies. HealthStream, Inc. was founded in 1990 and is headquartered in Nashville, Tennessee.
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