HealthStream (NASDAQ:HSTM – Get Free Report) and Taboola.com (NASDAQ:TBLA – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.
Risk & Volatility
HealthStream has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for HealthStream and Taboola.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HealthStream | 0 | 2 | 2 | 1 | 2.80 |
| Taboola.com | 0 | 0 | 4 | 0 | 3.00 |
Profitability
This table compares HealthStream and Taboola.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HealthStream | 6.84% | 5.67% | 3.91% |
| Taboola.com | -1.96% | -1.68% | -1.04% |
Earnings and Valuation
This table compares HealthStream and Taboola.com”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HealthStream | $279.06 million | 3.49 | $15.21 million | $0.65 | 49.28 |
| Taboola.com | $1.44 billion | 0.65 | -$82.04 million | ($0.10) | -32.00 |
HealthStream has higher earnings, but lower revenue than Taboola.com. Taboola.com is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
69.6% of HealthStream shares are held by institutional investors. Comparatively, 42.9% of Taboola.com shares are held by institutional investors. 20.6% of HealthStream shares are held by company insiders. Comparatively, 22.4% of Taboola.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
HealthStream beats Taboola.com on 9 of the 15 factors compared between the two stocks.
About HealthStream
HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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