HealthStream (HSTM) vs. Acadia Healthcare (ACHC) Head-To-Head Contrast

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HealthStream $225.97 million 3.34 $3.75 million $0.18 131.40
Acadia Healthcare $2.85 billion 1.06 $6.14 million $1.96 17.56

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

Profitability

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

Net Margins Return on Equity Return on Assets
HealthStream 2.36% 2.46% 1.79%
Acadia Healthcare 6.07% 8.57% 3.22%

Institutional and Insider Ownership

75.3% of HealthStream shares are held by institutional investors. 21.1% of HealthStream shares are held by insiders. Comparatively, 11.1% of Acadia Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for HealthStream and Acadia Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthStream 0 4 2 0 2.33
Acadia Healthcare 0 6 8 0 2.57

HealthStream presently has a consensus price target of $24.40, suggesting a potential upside of 3.17%. Acadia Healthcare has a consensus price target of $42.58, suggesting a potential upside of 23.72%. Given Acadia Healthcare’s stronger consensus rating and higher probable upside, analysts clearly believe Acadia Healthcare is more favorable than HealthStream.

Risk & Volatility

HealthStream has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Acadia Healthcare has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Summary

Acadia Healthcare beats HealthStream on 9 of the 14 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.

Acadia Healthcare Company Profile

Acadia Healthcare Company, Inc. is a provider of behavioral healthcare services, with operations in the United States and the United Kingdom. The Company focuses on acquiring and developing behavioral healthcare facilities. The Company operates through two segments: U.S. Facilities and U.K. Facilities. The Company is engaged in operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As of December 31, 2016, the U.S. Facilities segment included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities segment included 365 behavioral healthcare facilities with approximately 8,600 beds in the United Kingdom. As of December 31, 2016, the Company had operated 573 behavioral healthcare facilities with approximately 17,100 beds in 39 states, the United Kingdom and Puerto Rico.

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