National Research Corporation (NRC) vs Weave Communications, Inc. (WEAV)

National Research Corporation and Weave Communications, Inc. are both Health Information Services companies. Weave Communications, Inc. is the larger, with a market value of $587.3M against $450.1M — 1.3× the size. Weave Communications, Inc. has negative trailing earnings, so its P/E is not meaningful; National Research Corporation trades at 78.3×. Weave Communications, Inc. grew revenue faster over the last twelve months: 16.7% against −0.23%. National Research Corporation has the higher net margin (3.96% vs −7.97%) and the higher return on invested capital (10.3% vs −97.7%). Across the 21 metrics below, National Research Corporation leads on 11 and Weave Communications, Inc. on 10.

Valuation

Metric NRC WEAV Health Information Services median
P/E 78.28 n/m 39.52
P/S 3.08 2.27 2.65
P/B 65.77 6.89 2.32
Price to free cash flow 19.90 53.10 16.77
EV/EBITDA 21.87 44.45 12.35
EV/Sales 3.67 2.04 3.06
Earnings yield 1.28% (3.40%) (1.68%)
Free cash flow yield 5.02% 1.88% 0.54%

Profitability

Metric NRC WEAV Health Information Services median
Gross margin 61.75% 72.39% 63.38%
Operating margin 10.53% (8.35%) (8.35%)
Net margin 3.96% (7.97%) (14.70%)
Free cash flow margin 15.46% 4.28% 0.58%
Return on equity 39.82% (25.08%) (6.82%)
Return on assets 4.00% (9.95%) (6.02%)
Return on invested capital 10.32% (97.72%) 0.00%

Growth

Metric NRC WEAV Health Information Services median
Revenue growth (TTM) (0.23%) 16.73% 8.62%
EPS growth (last fiscal year) (51.92%) 7.50% —
Revenue growth, 5-year CAGR 0.53% 24.50% 12.36%
Net income growth, 5-year CAGR (21.22%) 0.00% 0.00%

Health

Metric NRC WEAV Health Information Services median
Debt to equity 13.13 0.09 0.01
Current ratio 0.65 1.25 2.37
Net debt to EBITDA 2.34 419.37 0.50

Dividend

Metric NRC WEAV Health Information Services median
Dividend yield 1.26% — 0.85%
Payout ratio 0.51 0.00 0.00

Size

Metric NRC WEAV Health Information Services median
Market cap 450.13m 587.30m 352.86m

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