WallStSmart

HealthEquity Inc (HQY)vsWaystar Holding Corp. Common Stock (WAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HealthEquity Inc generates 14% more annual revenue ($1.31B vs $1.16B). HQY leads profitability with a 16.4% profit margin vs 10.9%. WAY trades at a lower P/E of 31.3x. HQY earns a higher WallStSmart Score of 66/100 (B-).

HQY

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 6.7Quality: 6.5
Piotroski: 4/9

WAY

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 6.5Value: 5.0Quality: 6.0
Piotroski: 2/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HQYUndervalued (+54.4%)

Margin of Safety

+54.4%

Fair Value

$168.62

Current Price

$83.25

$85.37 discount

UndervaluedFair: $168.62Overvalued
WAYUndervalued (+8.3%)

Margin of Safety

+8.3%

Fair Value

$25.87

Current Price

$19.90

$5.97 discount

UndervaluedFair: $25.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HQY2 strengths · Avg: 9.0/10
EPS GrowthGrowth
92.4%10/10

Earnings expanding 92.4% YoY

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

WAY5 strengths · Avg: 8.8/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.6%8/10

Strong operational efficiency at 25.6%

Revenue GrowthGrowth
22.4%8/10

Revenue surging 22.4% year-over-year

EPS GrowthGrowth
37.5%8/10

Earnings expanding 37.5% YoY

Areas to Watch

HQY1 concerns · Avg: 4.0/10
P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

WAY4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : WAY

The strongest argument for WAY centers on Price/Book, Debt/Equity, Operating Margin. Revenue growth of 22.4% demonstrates continued momentum.

Bear Case : HQY

The primary concerns for HQY are P/E Ratio.

Bear Case : WAY

The primary concerns for WAY are P/E Ratio, Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

HQY profiles as a mature stock while WAY is a growth play — different risk/reward profiles.

WAY is growing revenue faster at 22.4% — sustainability is the question.

HQY generates stronger free cash flow (102M), providing more financial flexibility.

Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HQY scores higher overall (66/100 vs 63/100), backed by strong 16.4% margins. Both earn "Strong 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.

Waystar Holding Corp. Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Waystar Holding Corp. The company is headquartered in Lehi, Utah.

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