Definitive Healthcare (NASDAQ:DH – Get Free Report) and Certara (NASDAQ:CERT – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Volatility and Risk
Definitive Healthcare has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Certara has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
Valuation and Earnings
This table compares Definitive Healthcare and Certara”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $241.52 million | 0.58 | -$138.93 million | ($1.50) | -0.87 |
| Certara | $418.84 million | 4.21 | -$1.60 million | ($0.42) | -27.55 |
Certara has higher revenue and earnings than Definitive Healthcare. Certara is trading at a lower price-to-earnings ratio than Definitive Healthcare, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Definitive Healthcare and Certara’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -69.18% | 4.35% | 1.84% |
| Certara | -16.14% | 3.36% | 2.31% |
Insider & Institutional Ownership
98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 74.0% of Certara shares are held by institutional investors. 17.1% of Definitive Healthcare shares are held by insiders. Comparatively, 1.1% of Certara shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Definitive Healthcare and Certara, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 6 | 0 | 0 | 1.67 |
| Certara | 1 | 7 | 4 | 1 | 2.38 |
Definitive Healthcare currently has a consensus price target of $1.47, suggesting a potential upside of 12.32%. Certara has a consensus price target of $9.92, suggesting a potential downside of 14.29%. Given Definitive Healthcare’s higher probable upside, equities research analysts clearly believe Definitive Healthcare is more favorable than Certara.
Summary
Certara beats Definitive Healthcare on 9 of the 15 factors compared between the two stocks.
About Definitive Healthcare
Definitive Healthcare provides data and analytics software for organizations across the healthcare industry. Its platform brings together information on healthcare providers, facilities, services and market activity to help customers understand the healthcare landscape and make business decisions. The company serves customers including life sciences and medical technology companies, healthcare providers, health plans and consulting firms. Its tools support activities such as identifying and evaluating healthcare professionals and organizations, assessing markets, planning sales and marketing efforts, and analyzing provider networks.
About Certara
Certara provides software and consulting services that support the development and use of medicines. Its biosimulation tools help pharmaceutical and biotechnology companies model how drugs behave in the body, assess potential treatment outcomes, and inform decisions during drug research and development. The company’s offerings include software for pharmacokinetic and pharmacodynamic modeling, clinical trial simulation, and drug development analysis. Certara also provides scientific and regulatory consulting, including support for regulatory submissions and strategies that use modeling and simulation to guide development programs.
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