Head to Head Contrast: OptimizeRx (NASDAQ:OPRX) vs. HealthStream (NASDAQ:HSTM)

OptimizeRx (NASDAQ:OPRX) and HealthStream (NASDAQ:HSTM) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Profitability

This table compares OptimizeRx and HealthStream’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.66%	9.44%	7.11%
HealthStream	6.60%	6.81%	4.64%

Earnings and Valuation

This table compares OptimizeRx and HealthStream”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.60	$5.13 million	$0.23	40.52
HealthStream	$304.06 million	3.24	$18.34 million	$0.72	46.81

HealthStream has higher revenue and earnings than OptimizeRx. OptimizeRx is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

76.5% of OptimizeRx shares are held by institutional investors. Comparatively, 69.6% of HealthStream shares are held by institutional investors. 7.5% of OptimizeRx shares are held by insiders. Comparatively, 20.4% of HealthStream shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

OptimizeRx has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for OptimizeRx and HealthStream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
HealthStream	0	3	1	0	2.25

OptimizeRx currently has a consensus target price of $11.57, indicating a potential upside of 24.16%. HealthStream has a consensus target price of $27.00, indicating a potential downside of 19.88%. Given OptimizeRx’s stronger consensus rating and higher possible upside, equities analysts plainly believe OptimizeRx is more favorable than HealthStream.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About HealthStream

HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.