Interxion (NYSE: INXN) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

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91.5% of Interxion shares are held by institutional investors. Comparatively, 71.3% of HealthStream shares are held by institutional investors. 21.1% of HealthStream shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Interxion and HealthStream’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Interxion $552.66 million 8.33 $47.70 million $0.69 93.54
HealthStream $247.66 million 3.20 $10.00 million $0.27 90.85

Interxion has higher revenue and earnings than HealthStream. HealthStream is trading at a lower price-to-earnings ratio than Interxion, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Interxion has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Interxion and HealthStream’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Interxion 8.61% 7.55% 2.71%
HealthStream 4.04% 2.73% 1.99%

Analyst Ratings

This is a summary of current ratings and recommmendations for Interxion and HealthStream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Interxion 0 0 11 0 3.00
HealthStream 0 4 4 0 2.50

Interxion currently has a consensus price target of $65.20, suggesting a potential upside of 1.02%. HealthStream has a consensus price target of $25.67, suggesting a potential upside of 4.63%. Given HealthStream’s higher probable upside, analysts plainly believe HealthStream is more favorable than Interxion.

Summary

Interxion beats HealthStream on 11 of the 14 factors compared between the two stocks.

Interxion Company Profile

InterXion Holding N.V. provides carrier and cloud neutral colocation data center services in France, Germany, the Netherlands, the United Kingdom, and the rest of Europe. The company enables its customers to connect to a range of telecommunications carriers, Internet service providers, and other customers. Its data centers acts as content, cloud, and connectivity hubs that facilitate the processing, storage, sharing, and distribution of data, content, and applications between its customers. The company offers colocation services, including space and power to deploy IT infrastructure in its data centers; power backup services; and connectivity services that allow its customers to connect their IT infrastructure to exchange traffic and access cloud platforms, as well as installs and manages physical connections running from its customers' equipment to the equipment of its telecommunications carriers, Internet exchange customers, and other customers. It also provides managed services comprising systems monitoring, systems management, engineering support services, data back-up, and storage services. The company offers its services to digital media and distribution, enterprises, financial services sectors, system integrators, cloud providers, and connectivity providers through direct sales forces, as well as through tradeshows, networking events, and industry seminars. As of December 31, 2016, it operated through 45 carrier and cloud neutral colocation data centers in 13 metropolitan areas in 11 countries. In addition, the company is involved in real estate management/holding businesses. InterXion Holding N.V. was incorporated in 1998 and is headquartered in Amsterdam, the Netherlands.

HealthStream Company Profile

HealthStream, Inc. provides workforce and provider solutions to the healthcare organizations in the United States. It operates in HealthStream Workforce Solutions and HealthStream Provider Solutions segments. The company offers workforce development solutions comprising software-as-a-service (SaaS) and subscription-based products to meet talent management, training, certification, competency assessment, performance appraisal, and development needs, as well as training, implementation, and account management services. It also provides applications for recruiting and applicant tracking; learning; performance appraisal; compensation management; succession planning; competency management; credentialing and privileging; provider enrollment; disclosure management; clinical development; simulation-based education; and industry-sponsored training. In addition, the company offers EchoCredentialing, a platform that manages medical staff credentialing and privileging processes; EchoOneApp, an enrollment platform; and EchoAccess, a platform that supports hospital call centers. Further, it provides Verity, a SaaS-based credentialing, privileging, and enrollment solution. The company markets its products and services to healthcare industry, including private, not for profit, and government entities, as well as pharmaceutical and medical device companies. HealthStream, Inc. was founded in 1990 and is headquartered in Nashville, Tennessee.

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