KLDiscovery (OTCMKTS:KLDI – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Risk and Volatility
KLDiscovery has a beta of -0.68, indicating that its share price is 168% less volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Earnings & Valuation
This table compares KLDiscovery and Health Catalyst”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KLDiscovery | $345.80 million | 0.01 | -$34.81 million | ($1.56) | -0.03 |
| Health Catalyst | $302.06 million | 1.61 | -$118.15 million | ($1.35) | -5.92 |
Institutional & Insider Ownership
20.4% of KLDiscovery shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 31.6% of KLDiscovery shares are held by insiders. Comparatively, 2.5% of Health Catalyst shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares KLDiscovery and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KLDiscovery | -20.91% | -607.40% | -9.45% |
| Health Catalyst | -26.20% | -7.51% | -3.72% |
Analyst Ratings
This is a breakdown of recent recommendations for KLDiscovery and Health Catalyst, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KLDiscovery | 0 | 0 | 0 | 0 | 0.00 |
| Health Catalyst | 0 | 3 | 9 | 0 | 2.75 |
Health Catalyst has a consensus target price of $11.79, indicating a potential upside of 47.58%. Given Health Catalyst’s stronger consensus rating and higher possible upside, analysts clearly believe Health Catalyst is more favorable than KLDiscovery.
Summary
Health Catalyst beats KLDiscovery on 9 of the 14 factors compared between the two stocks.
About KLDiscovery
KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.
About Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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