Definitive Healthcare (NASDAQ:DH – Get Free Report) and MarketWise (NASDAQ:MKTW – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Profitability
This table compares Definitive Healthcare and MarketWise’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Definitive Healthcare | -142.38% | 1.76% | 1.12% |
MarketWise | 1.20% | -1.89% | 1.50% |
Institutional & Insider Ownership
98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 23.0% of MarketWise shares are held by institutional investors. 14.8% of Definitive Healthcare shares are held by insiders. Comparatively, 28.6% of MarketWise shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Definitive Healthcare | $255.85 million | 1.86 | -$202.39 million | ($3.10) | -1.33 |
MarketWise | $423.38 million | 0.43 | $1.78 million | $0.12 | 4.64 |
MarketWise has higher revenue and earnings than Definitive Healthcare. Definitive Healthcare is trading at a lower price-to-earnings ratio than MarketWise, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Definitive Healthcare has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Definitive Healthcare and MarketWise, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Definitive Healthcare | 1 | 8 | 3 | 0 | 2.17 |
MarketWise | 0 | 1 | 0 | 0 | 2.00 |
Definitive Healthcare presently has a consensus target price of $5.72, suggesting a potential upside of 38.89%. MarketWise has a consensus target price of $2.00, suggesting a potential upside of 259.32%. Given MarketWise’s higher possible upside, analysts plainly believe MarketWise is more favorable than Definitive Healthcare.
Summary
MarketWise beats Definitive Healthcare on 8 of the 14 factors compared between the two stocks.
About Definitive Healthcare
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 MarketWise
MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.
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