HealthEquity Inc (HQY)vsR1 RCM Inc (RCM)
HQY
HealthEquity Inc
$83.25
+0.75%
HEALTHCARE · Cap: $6.96B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
R1 RCM Inc generates 88% more annual revenue ($2.46B vs $1.31B). HQY leads profitability with a 16.4% profit margin vs -2.5%. HQY appears more attractively valued with a PEG of 1.19. 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
+54.4%
Fair Value
$168.62
Current Price
$83.25
$85.37 discount
Margin of Safety
+47.9%
Fair Value
$27.45
Current Price
$14.31
$13.14 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.4% YoY
Strong operational efficiency at 21.6%
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
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 EPS Growth, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.6%. PEG of 1.19 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.
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 (102M), providing more financial flexibility.
Bottom Line
HQY scores higher overall (66/100 vs 39/100), backed by strong 16.4% margins. RCM offers better value entry with a 47.9% 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) is a premier provider of technology-driven revenue cycle management services that enhance the financial performance of healthcare organizations nationwide. Utilizing cutting-edge analytics and industry insights, R1 RCM delivers holistic solutions that streamline billing processes and boost operational efficiencies for a wide range of clients, including hospitals and outpatient facilities. The company’s innovative methodologies not only optimize revenue capture but also significantly improve patient experiences, solidifying its position as a pivotal player in the dynamic healthcare landscape. With a strategic focus on expanding its service capabilities and market penetration, R1 RCM is well-positioned to meet the surging demand for sophisticated revenue cycle solutions within the healthcare industry.
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