WallStSmart

HealthStream Inc (HSTM)vsR1 RCM Inc (RCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

R1 RCM Inc generates 690% more annual revenue ($2.46B vs $311.78M). HSTM leads profitability with a 6.4% profit margin vs -2.5%. RCM appears more attractively valued with a PEG of 2.06. HSTM earns a higher WallStSmart Score of 55/100 (C).

HSTM

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 3.7Quality: 6.0
Piotroski: 3/9Altman Z: 2.33

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 5.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HSTM.

RCMUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$19.71

Current Price

$14.31

$5.40 discount

UndervaluedFair: $19.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.9%8/10

Earnings expanding 42.9% YoY

RCM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

HSTM4 concerns · Avg: 3.3/10
P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$749.08M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.7%3/10

ROE of 5.7% — below average capital efficiency

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

RCM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-2.2%2/10

ROE of -2.2% — below average capital efficiency

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HSTM

The strongest argument for HSTM centers on Debt/Equity, Price/Book, EPS Growth. Revenue growth of 10.5% demonstrates continued momentum.

Bull Case : RCM

The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.

Bear Case : HSTM

The primary concerns for HSTM are P/E Ratio, Market Cap, Return on Equity.

Bear Case : RCM

The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.

Key Dynamics to Monitor

HSTM profiles as a value 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.

RCM generates stronger free cash flow (60M), providing more financial flexibility.

Bottom Line

HSTM scores higher overall (55/100 vs 39/100) and 10.5% revenue growth. RCM offers better value entry with a 27.4% margin of safety. Both earn "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.

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.

Visit Website →

R1 RCM Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

R1 RCM Inc (RCM) is a premier provider of technology-driven revenue cycle management solutions, dedicated to significantly improving the financial performance of healthcare organizations throughout the United States. By harnessing advanced analytics and extensive industry expertise, the company delivers comprehensive services that streamline billing processes and enhance operational efficiency for both hospitals and outpatient facilities. R1 RCM's innovative solutions not only maximize revenue capture but also enhance patient experiences, positioning the company as a vital player in the dynamic healthcare landscape. With a focus on expanding service offerings and increasing market share, R1 RCM is well-equipped to meet the growing demand for sophisticated revenue cycle management services, ensuring robust growth and competitive advantage in the marketplace.

Want to dig deeper into these stocks?