WallStSmart

HealthEquity Inc (HQY)vsHealthStream Inc (HSTM)

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Smart Verdict

WallStSmart Research — data-driven comparison

HealthEquity Inc generates 324% more annual revenue ($1.36B vs $321.12M). HQY leads profitability with a 17.4% profit margin vs 6.6%. HQY appears more attractively valued with a PEG of 1.38. HQY earns a higher WallStSmart Score of 62/100 (C+).

HQY

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.7Quality: 7.5
Piotroski: 7/9Altman Z: 1.86

HSTM

Buy

53

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 3/9Altman Z: 2.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+58.3%)

Margin of Safety

+58.3%

Fair Value

$184.63

Current Price

$88.25

$96.38 discount

UndervaluedFair: $184.63Overvalued

Intrinsic value data unavailable for HSTM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY1 strengths · Avg: 8.0/10
Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

HSTM3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
28.4%8/10

Earnings expanding 28.4% YoY

Areas to Watch

HQY2 concerns · Avg: 4.0/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

HSTM4 concerns · Avg: 3.0/10
Market CapQuality
$866.38M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HQY

The strongest argument for HQY centers on Operating Margin. Profitability is solid with margins at 17.4% and operating margin at 28.4%. PEG of 1.38 suggests the stock is reasonably priced for its growth.

Bull Case : HSTM

The strongest argument for HSTM centers on Debt/Equity, Price/Book, EPS Growth. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio, Altman Z-Score.

Bear Case : HSTM

The primary concerns for HSTM are Market Cap, Return on Equity, Profit Margin. A P/E of 41.1x leaves little room for execution misses.

Key Dynamics to Monitor

HQY profiles as a mature stock while HSTM is a value play — different risk/reward profiles.

HSTM carries more volatility with a beta of 0.44 — expect wider price swings.

HSTM is growing revenue faster at 12.5% — sustainability is the question.

HQY generates stronger free cash flow (135M), providing more financial flexibility.

Bottom Line

HQY scores higher overall (62/100 vs 53/100), backed by strong 17.4% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

HealthEquity Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.

HealthStream Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthStream, Inc. provides provider and staff solutions for healthcare organizations in the United States. The company is headquartered in Nashville, Tennessee.

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