HealthEquity Inc (HQY)vsR1 RCM Inc (RCM)
HQY
HealthEquity Inc
$104.63
+1.15%
HEALTHCARE · Cap: $8.41B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
R1 RCM Inc generates 84% more annual revenue ($2.46B vs $1.34B). HQY leads profitability with a 17.2% profit margin vs -2.5%. HQY appears more attractively valued with a PEG of 1.44. HQY earns a higher WallStSmart Score of 66/100 (B-).
HQY
Strong Buy66
out of 100
Grade: B-
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.6%
Fair Value
$181.42
Current Price
$104.63
$76.79 discount
Margin of Safety
+26.6%
Fair Value
$19.49
Current Price
$14.31
$5.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 29.3%
Earnings expanding 34.4% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Grey zone — moderate risk
Expensive relative to growth rate
Operating margin of 3.8%
ROE of -2.2% — below average capital efficiency
Earnings declined 99.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HQY
The strongest argument for HQY centers on Operating Margin, EPS Growth. Profitability is solid with margins at 17.2% and operating margin at 29.3%. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bull Case : RCM
The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.
Bear Case : HQY
The primary concerns for HQY are P/E Ratio, Altman Z-Score.
Bear Case : RCM
The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.
Key Dynamics to Monitor
HQY profiles as a mature stock while RCM is a turnaround play — different risk/reward profiles.
RCM carries more volatility with a beta of 0.84 — expect wider price swings.
RCM is growing revenue faster at 14.7% — sustainability is the question.
HQY generates stronger free cash flow (97M), providing more financial flexibility.
Bottom Line
HQY scores higher overall (66/100 vs 39/100), backed by strong 17.2% margins. RCM offers better value entry with a 26.6% margin of safety. Both earn "Strong Buy" and "Hold" 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.
R1 RCM Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
R1 RCM Inc (RCM) stands out as a leading provider of technology-driven revenue cycle management solutions, specifically designed to enhance the financial performance of healthcare organizations across the United States. Leveraging cutting-edge analytics and deep industry insights, R1 RCM optimizes billing processes and boosts operational efficiency for hospitals and outpatient facilities. By maximizing revenue capture while improving patient experiences, the company solidifies its position within a rapidly evolving healthcare landscape. With strategic initiatives aimed at expanding its service offerings and increasing market presence, R1 RCM is poised for sustained growth and a competitive edge in the increasingly complex revenue cycle management sector.
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