HealthStream, Inc. (HSTM) vs SOPHiA GENETICS SA (SOPH)

HealthStream, Inc. and SOPHiA GENETICS SA are both Health Information Services companies. HealthStream, Inc. is the larger, with a market value of $883.3M against $703.2M — 1.3× the size. SOPHiA GENETICS SA has negative trailing earnings, so its P/E is not meaningful; HealthStream, Inc. trades at 40.5×. SOPHiA GENETICS SA grew revenue faster over the last twelve months: 23.7% against 8.78%. HealthStream, Inc. has the higher net margin (6.60% vs −93.9%) and the higher return on invested capital (5.56% vs −196.5%). Across the 19 metrics below, HealthStream, Inc. leads on 15 and SOPHiA GENETICS SA on 4.

Valuation

Metric HSTM SOPH Health Information Services median
P/E 40.46 n/m 39.52
P/S 2.65 7.15 2.65
P/B 2.39 7.41 2.32
Price to free cash flow 12.19 n/m 16.77
EV/EBITDA 9.62 n/m 12.35
EV/Sales 2.51 6.49 3.06
Earnings yield 2.47% (13.79%) (1.68%)
Free cash flow yield 8.21% (6.71%) 0.54%

Profitability

Metric HSTM SOPH Health Information Services median
Gross margin 65.08% 66.63% 63.38%
Operating margin 8.04% (85.55%) (8.35%)
Net margin 6.60% (93.86%) (14.70%)
Free cash flow margin 21.76% (47.83%) 0.58%
Return on equity 6.00% (101.22%) (6.82%)
Return on assets 4.15% (43.02%) (6.02%)
Return on invested capital 5.56% (196.45%) 0.00%

Growth

Metric HSTM SOPH Health Information Services median
Revenue growth (TTM) 8.78% 23.65% 8.62%
EPS growth (last fiscal year) (7.58%) (23.16%) —
Revenue growth, 5-year CAGR 4.43% 22.16% 12.36%
Net income growth, 5-year CAGR 5.41% 0.00% 0.00%

Health

Metric HSTM SOPH Health Information Services median
Debt to equity 0.00 0.58 0.01
Current ratio 1.06 2.69 2.37
Net debt to EBITDA (0.75) 0.37 0.50

Dividend

Metric HSTM SOPH Health Information Services median
Dividend yield 0.19% — 0.85%
Payout ratio 0.12 0.00 0.00

Size

Metric HSTM SOPH Health Information Services median
Market cap 883.30m 703.16m 352.86m

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