Financial Survey: Health Catalyst (NASDAQ:HCAT) versus Claritev (NYSE:CTEV)

Claritev (NYSE:CTEV) and Health Catalyst (NASDAQ:HCAT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Claritev and Health Catalyst, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claritev	1	2	6	0	2.56
Health Catalyst	1	7	3	0	2.18

Claritev currently has a consensus target price of $44.83, suggesting a potential upside of 27.55%. Health Catalyst has a consensus target price of $2.45, suggesting a potential upside of 42.44%. Given Health Catalyst’s higher possible upside, analysts plainly believe Health Catalyst is more favorable than Claritev.

Earnings and Valuation

This table compares Claritev and Health Catalyst”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claritev	$965.41 million	0.62	-$284.28 million	($17.01)	-2.07
Health Catalyst	$311.14 million	0.42	-$177.97 million	($3.68)	-0.47

Health Catalyst has lower revenue, but higher earnings than Claritev. Claritev is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

87.2% of Claritev shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 7.4% of Claritev shares are held by insiders. Comparatively, 19.4% of Health Catalyst shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Claritev has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Claritev and Health Catalyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claritev	-28.46%	N/A	-5.76%
Health Catalyst	-90.61%	-1.83%	-0.80%

About Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

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.