Alphabet Inc Class A (GOOGL) versus HealthStream (HSTM) Financial Analysis

Alphabet Inc Class A (NASDAQ: GOOGL) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Alphabet Inc Class A and HealthStream’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alphabet Inc Class A $110.86 billion 7.86 $12.66 billion $32.05 39.08
HealthStream $247.66 million 3.92 $10.00 million $0.27 111.26

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.

Insider & Institutional Ownership

33.5% of Alphabet Inc Class A shares are owned by institutional investors. Comparatively, 69.1% of HealthStream shares are owned by institutional investors. 13.2% of Alphabet Inc Class A shares are owned by company insiders. Comparatively, 21.1% of HealthStream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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%
HealthStream 13.79% 3.75% 2.70%

Analyst Ratings

This is a summary of recent recommendations and price targets for Alphabet Inc Class A and HealthStream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alphabet Inc Class A 0 4 31 0 2.89
HealthStream 0 5 1 0 2.17

Alphabet Inc Class A presently has a consensus target price of $1,306.54, suggesting a potential upside of 4.31%. HealthStream has a consensus target price of $26.20, suggesting a potential downside of 12.78%. Given Alphabet Inc Class A’s stronger consensus rating and higher possible upside, research analysts clearly believe Alphabet Inc Class A is more favorable than HealthStream.

Volatility & Risk

Alphabet Inc Class A has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Summary

Alphabet Inc Class A beats HealthStream on 10 of the 14 factors compared between the two stocks.

About Alphabet Inc Class A

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.

About HealthStream

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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