Investors are evaluating the potential of two small-cap medical companies: Health Catalyst (NASDAQ: HCAT) and Healthcare Triangle (NASDAQ: HCTI). A comparative analysis reveals significant differences in institutional ownership, earnings, and overall financial performance, which may influence stock selection for potential investors.
Institutional and Insider Ownership
A key factor in assessing stock potential is institutional ownership. Currently, 85.0% of Health Catalyst shares are held by institutional investors, indicating strong confidence among large money managers and hedge funds. In stark contrast, only 0.3% of Healthcare Triangle shares are owned by institutions. Insider ownership also differs, with 2.6% of shares in Health Catalyst held by insiders compared to 1.6% for Healthcare Triangle. The disparity in institutional investment suggests that Health Catalyst may be viewed as having more potential for long-term growth.
Earnings and Valuation
When examining financial metrics, Health Catalyst and Healthcare Triangle present contrasting profiles. Healthcare Triangle reports lower revenue but higher earnings per share compared to Health Catalyst. Notably, Health Catalyst trades at a lower price-to-earnings ratio, signifying that it may offer a more attractive entry point for investors in terms of current valuation.
Volatility is another important consideration. Health Catalyst has a beta of 1.69, indicating that its stock is 69% more volatile than the S&P 500. Conversely, Healthcare Triangle has a beta of 0.93, suggesting it is 7% less volatile. This difference highlights the risk profiles of the two companies, with Health Catalyst carrying a higher risk but potentially greater reward.
Analyst Ratings and Profitability
Recent analyst recommendations provide further insight into investor sentiment. According to MarketBeat.com, Health Catalyst has a consensus target price of $4.36, indicating a potential upside of 91.39%. This strong consensus rating positions Health Catalyst as a more favorable option among analysts compared to Healthcare Triangle.
In terms of profitability, Health Catalyst outperforms Healthcare Triangle across several metrics, including net margins and return on equity. This trend suggests that Health Catalyst is not only more attractive in terms of growth potential but also more efficient in its operations.
Company Profiles
Health Catalyst, Inc., founded in 2008 and headquartered in South Jordan, Utah, specializes in providing data and analytics technology to healthcare organizations. The company operates in two segments: Technology and Professional Services. Its offerings include a data operating system that integrates data from various software systems and analytics applications designed for clinical, quality, and financial use cases. The company previously operated as HQC Holdings, Inc. before rebranding in March 2017.
On the other hand, Healthcare Triangle, Inc., incorporated in 2019 and based in Pleasanton, California, focuses on healthcare information technology. It develops solutions in cloud services and data science for the healthcare and life sciences sectors. Its products include CloudEz, a multi-cloud management platform, and DataEz, a data analytics platform tailored for healthcare providers. The company also provides various IT services, enhancing digital transformation efforts for its clients.
In summary, a comparison of Health Catalyst and Healthcare Triangle indicates that Health Catalyst outperforms its competitor in multiple areas, including institutional ownership, analyst ratings, and profitability metrics. Investors considering these two stocks may find Health Catalyst to be the more favorable option based on current data and market sentiment.
