Financial Comparison: Definitive Healthcare (NASDAQ:DH) & Xunlei (NASDAQ:XNET)

Definitive Healthcare (NASDAQ:DH) and Xunlei (NASDAQ:XNET) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 5.1% of Xunlei shares are held by institutional investors. 15.3% of Definitive Healthcare shares are held by insiders. Comparatively, 21.7% of Xunlei shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Definitive Healthcare and Xunlei, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Definitive Healthcare	0	7	3	0	2.30
Xunlei	0	0	0	0	N/A

Definitive Healthcare currently has a consensus target price of $11.31, suggesting a potential upside of 54.75%. Given Definitive Healthcare’s higher possible upside, research analysts clearly believe Definitive Healthcare is more favorable than Xunlei.

Risk and Volatility

Definitive Healthcare has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Definitive Healthcare and Xunlei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Definitive Healthcare	-80.40%	0.43%	0.29%
Xunlei	3.90%	4.48%	3.04%

Valuation and Earnings

This table compares Definitive Healthcare and Xunlei’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Definitive Healthcare	$251.41 million	3.42	-$202.39 million	($1.78)	-4.11
Xunlei	$364.91 million	0.26	$14.23 million	$0.23	6.44

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

Summary

Xunlei beats Definitive Healthcare on 8 of the 13 factors compared between the two stocks.

About Definitive Healthcare

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. The company was founded in 2011 and is headquartered in Framingham, Massachusetts.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an Internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through various products, such as Green Channel. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; live video streaming and online advertising services; and cloud computing services and products, live streaming services, and other internet value-added services. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is based in Shenzhen, the People's Republic of China.