DarioHealth (NASDAQ:DRIO – Get Free Report) and HealthStream (NASDAQ:HSTM – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares DarioHealth and HealthStream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DarioHealth | -169.87% | -54.81% | -33.36% |
| HealthStream | 6.25% | 6.37% | 4.37% |
Risk and Volatility
DarioHealth has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.
Insider and Institutional Ownership
33.4% of DarioHealth shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 3.5% of DarioHealth shares are owned by insiders. Comparatively, 20.4% of HealthStream shares are owned 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.
Valuation & Earnings
This table compares DarioHealth and HealthStream”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DarioHealth | $22.36 million | 1.04 | -$41.71 million | ($6.13) | -0.39 |
| HealthStream | $304.06 million | 2.78 | $18.34 million | $0.70 | 41.27 |
HealthStream has higher revenue and earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for DarioHealth and HealthStream, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DarioHealth | 1 | 1 | 3 | 0 | 2.40 |
| HealthStream | 0 | 4 | 1 | 0 | 2.20 |
DarioHealth presently has a consensus price target of $9.00, suggesting a potential upside of 278.15%. HealthStream has a consensus price target of $36.00, suggesting a potential upside of 24.61%. Given DarioHealth’s stronger consensus rating and higher possible upside, analysts plainly believe DarioHealth is more favorable than HealthStream.
Summary
HealthStream beats DarioHealth on 10 of the 14 factors compared between the two stocks.
About DarioHealth
DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.
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.
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