HealthEquity, Inc. (HQY) vs Waystar Holding Corp. (WAY)

HealthEquity, Inc. and Waystar Holding Corp. are both Health Information Services companies. HealthEquity, Inc. is the larger, with a market value of $7.3B against $4.7B — 1.6× the size. HealthEquity, Inc. trades at the lower P/E: 31.6× against 34.3×. Waystar Holding Corp. grew revenue faster over the last twelve months: 19.2% against 7.34%. HealthEquity, Inc. has the higher net margin (17.4% vs 11.2%) and the higher return on invested capital (8.24% vs 3.30%). Across the 20 metrics below, HealthEquity, Inc. leads on 13 and Waystar Holding Corp. on 7.

Valuation

Metric HQY WAY Health Information Services median
P/E 31.63 34.31 39.52
P/S 5.40 3.93 2.65
P/B 3.70 1.19 2.32
Price to free cash flow 16.85 19.24 16.77
EV/EBITDA 15.77 13.75 12.35
EV/Sales 5.90 4.96 3.06
Earnings yield 3.16% 2.91% (1.68%)
Free cash flow yield 5.93% 5.20% 0.54%

Profitability

Metric HQY WAY Health Information Services median
Gross margin 71.25% 69.11% 63.38%
Operating margin 25.80% 22.87% (8.35%)
Net margin 17.36% 11.18% (14.70%)
Free cash flow margin 32.08% 20.42% 0.58%
Return on equity 11.43% 3.77% (6.82%)
Return on assets 7.07% 2.56% (6.02%)
Return on invested capital 8.24% 3.30% 0.00%

Growth

Metric HQY WAY Health Information Services median
Revenue growth (TTM) 7.34% 19.23% 8.62%
EPS growth (last fiscal year) 125.69% 569.23% —
Revenue growth, 5-year CAGR 12.36% — 12.36%
Net income growth, 5-year CAGR 89.38% — 0.00%

Health

Metric HQY WAY Health Information Services median
Debt to equity 0.47 0.37 0.01
Current ratio 2.99 1.85 2.37
Net debt to EBITDA 1.34 3.49 0.50

Dividend

Metric HQY WAY Health Information Services median
Dividend yield — — 0.85%
Payout ratio 0.00 — 0.00

Size

Metric HQY WAY Health Information Services median
Market cap 7.33b 4.72b 352.86m

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