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

Risk & Volatility

HealthStream has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Line has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Earnings & Valuation

This table compares HealthStream and Line’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HealthStream $247.66 million 4.06 $10.00 million $0.27 115.30
Line $1.60 billion 6.44 $71.89 million $0.30 143.83

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

Analyst Recommendations

This is a summary of recent ratings and price targets for HealthStream and Line, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthStream 0 5 1 0 2.17
Line 3 0 5 0 2.25

HealthStream currently has a consensus price target of $26.20, indicating a potential downside of 15.84%. Given HealthStream’s higher probable upside, research analysts clearly believe HealthStream is more favorable than Line.

Profitability

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

Net Margins Return on Equity Return on Assets
HealthStream 13.79% 3.75% 2.70%
Line 0.36% 0.06% 0.04%

Insider & Institutional Ownership

72.1% of HealthStream shares are owned by institutional investors. Comparatively, 3.1% of Line shares are owned by institutional investors. 20.6% of HealthStream shares are owned 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.

Summary

Line beats HealthStream on 8 of the 14 factors compared between the two stocks.

About HealthStream

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.

About Line

LINE Corporation provides a platform for mobile messaging and communication services, content distribution, and related services primarily in Japan, Taiwan, Thailand, Indonesia, and Hong Kong. The company offers LINE, a cross-platform messenger application that enable users to communicate through free instant messaging, stickers, and voice and video calls, as well as serves as a smart portal to its other applications and services. It also provides communication and content sales, and advertising services through the LINE platform; and advertising services through LINE advertising, and livedoor and NAVER Matome Web portals. The company was formerly known as NHN Japan Corporation and changed its name to LINE Corporation in April 2013. The company was founded in 2000 and is headquartered in Tokyo, Japan. LINE Corporation is a subsidiary of Naver Corporation.

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