HealthStream (NASDAQ: HSTM) and China Cord Blood (NYSE:CO) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Volatility & Risk
HealthStream has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, China Cord Blood has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for HealthStream and China Cord Blood, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Cord Blood||0||0||0||0||N/A|
HealthStream currently has a consensus price target of $24.40, suggesting a potential upside of 2.82%. Given HealthStream’s higher possible upside, research analysts plainly believe HealthStream is more favorable than China Cord Blood.
Valuation & Earnings
This table compares HealthStream and China Cord Blood’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HealthStream||$225.97 million||3.35||$3.75 million||$0.18||131.83|
|China Cord Blood||$110.41 million||10.91||$18.33 million||$0.35||28.54|
China Cord Blood has lower revenue, but higher earnings than HealthStream. China Cord Blood is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
74.3% of HealthStream shares are held by institutional investors. Comparatively, 9.1% of China Cord Blood shares are held by institutional investors. 21.1% of HealthStream shares are held by company 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.
This table compares HealthStream and China Cord Blood’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Cord Blood||26.79%||9.68%||4.36%|
HealthStream beats China Cord Blood on 7 of the 13 factors compared between the two stocks.
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.
China Cord Blood Company Profile
China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.
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