China Cord Blood (CO) and HealthStream (HSTM) Financial Analysis
HealthStream (NASDAQ: HSTM) and China Cord Blood (NYSE:CO) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Valuation & Earnings
This table compares HealthStream and China Cord Blood’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HealthStream||$225.97 million||3.20||$3.75 million||$0.18||126.06|
|China Cord Blood||$110.41 million||11.43||$18.33 million||$0.35||29.89|
China Cord Blood has lower revenue, but higher earnings than HealthStream. China Cord Blood 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
74.4% of HealthStream shares are owned by institutional investors. Comparatively, 9.1% of China Cord Blood shares are owned by institutional investors. 21.1% of HealthStream shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares HealthStream and China Cord Blood’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Cord Blood||26.79%||9.68%||4.36%|
This is a breakdown of current ratings and target prices for HealthStream and China Cord Blood, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Cord Blood||0||0||0||0||N/A|
HealthStream currently has a consensus target price of $24.40, indicating a potential upside of 7.54%. Given HealthStream’s higher possible upside, equities analysts clearly believe HealthStream is more favorable than China Cord Blood.
Volatility & Risk
HealthStream has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, China Cord Blood has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
HealthStream beats China Cord Blood on 7 of the 13 factors compared between the two stocks.
HealthStream Company Profile
HealthStream, Inc. (HealthStream) provides workforce, patient experience and provider solutions for healthcare organizations. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions and HealthStream Provider Solutions. HealthStream’s products and services are organized into three segments: Workforce Solutions, Patient Experience Solutions, and Provider Solutions. HealthStream’s solutions are provided to a range of customers within the healthcare industry across the continuum of care. Delivered primarily as Software-as-a-Service (SaaS), the Company’s solutions focus on challenges facing the healthcare workforce and healthcare organizations, including the need to manage, retain, engage and develop healthcare workforce talent; meet compliance requirements; manage ongoing medical staff credentialing and privileging processes, and deliver patient experiences of care in healthcare organizations.
China Cord Blood Company Profile
China Cord Blood Corporation is a provider of cord blood banking services in China. The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China. It provides cord blood testing, processing and storage services under the direction of subscribers for a cord blood processing fee and a storage fee. It also tests, processes and stores donated cord blood, and provides matching services to the public for a fee. The Company provides cord blood processing and storage services for expectant parents interested in capturing the opportunities made available by evolving medical treatments and technologies, such as cord blood transplants. It also preserves cord blood units donated by the public; provides matching services on such donated units, and delivers matching units to patients in need of transplants. As of March 31, 2016, the Company had three operating cord blood banks.
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