The Joint Corp. (NASDAQ: JYNT) and HealthStream (NASDAQ:HSTM) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Volatility & Risk
The Joint Corp. has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for The Joint Corp. and HealthStream, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Joint Corp.||0||0||4||0||3.00|
The Joint Corp. currently has a consensus price target of $6.15, indicating a potential upside of 30.30%. HealthStream has a consensus price target of $24.40, indicating a potential upside of 3.52%. Given The Joint Corp.’s stronger consensus rating and higher probable upside, equities research analysts plainly believe The Joint Corp. is more favorable than HealthStream.
Insider & Institutional Ownership
46.9% of The Joint Corp. shares are owned by institutional investors. Comparatively, 76.4% of HealthStream shares are owned by institutional investors. 6.1% of The Joint Corp. shares are owned by insiders. Comparatively, 21.1% of HealthStream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares The Joint Corp. and HealthStream’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The Joint Corp.||$20.52 million||3.03||-$15.17 million||($0.87)||-5.43|
|HealthStream||$225.97 million||3.33||$3.75 million||$0.18||130.95|
HealthStream has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
This table compares The Joint Corp. and HealthStream’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Joint Corp.||-48.08%||-103.25%||-42.06%|
HealthStream beats The Joint Corp. on 9 of the 13 factors compared between the two stocks.
The Joint Corp. Company Profile
The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.
HealthStream Company Profile
HealthStream, Inc. (HealthStream) provides workforce, patient experience and provider solutions for healthcare organizations. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions and HealthStream Provider Solutions. HealthStream’s products and services are organized into three segments: Workforce Solutions, Patient Experience Solutions, and Provider Solutions. HealthStream’s solutions are provided to a range of customers within the healthcare industry across the continuum of care. Delivered primarily as Software-as-a-Service (SaaS), the Company’s solutions focus on challenges facing the healthcare workforce and healthcare organizations, including the need to manage, retain, engage and develop healthcare workforce talent; meet compliance requirements; manage ongoing medical staff credentialing and privileging processes, and deliver patient experiences of care in healthcare organizations.
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