HealthStream Inc (HSTM)vsR1 RCM Inc (RCM)
HSTM
HealthStream Inc
$26.73
-0.20%
HEALTHCARE · Cap: $749.08M
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
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
Buy55
out of 100
Grade: C
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for HSTM.
Margin of Safety
+27.4%
Fair Value
$19.71
Current Price
$14.31
$5.40 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Reasonable price relative to book value
Earnings expanding 42.9% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 5.7% — below average capital efficiency
6.4% margin — thin
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 : 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.
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