Contrasting Definitive Healthcare (NASDAQ:DH) & Waystar (NASDAQ:WAY)

Definitive Healthcare (NASDAQ:DH – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Definitive Healthcare and Waystar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Definitive Healthcare -72.28% 3.55% 1.63%
Waystar 10.70% 6.91% 4.67%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Definitive Healthcare and Waystar, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Definitive Healthcare 3 6 0 0 1.67
Waystar 0 4 17 2 2.91

Definitive Healthcare presently has a consensus target price of $1.47, indicating a potential upside of 31.38%. Waystar has a consensus target price of $35.23, indicating a potential upside of 20.72%. Given Definitive Healthcare’s higher possible upside, equities analysts plainly believe Definitive Healthcare is more favorable than Waystar.

Risk and Volatility

Definitive Healthcare has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Waystar has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Institutional and Insider Ownership

98.7% of Definitive Healthcare shares are owned by institutional investors. 17.1% of Definitive Healthcare shares are owned by company insiders. Comparatively, 3.5% of Waystar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Definitive Healthcare and Waystar”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Definitive Healthcare $241.52 million 0.50 -$138.93 million ($1.50) -0.75
Waystar $1.10 billion 5.11 $112.09 million $0.69 42.29

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

Summary

Waystar beats Definitive Healthcare on 11 of the 15 factors compared between the two stocks.

About Definitive Healthcare

(Get Free Report)

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

About Waystar

(Get Free Report)

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.

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