HealthEquity Inc (HQY)vsR1 RCM Inc (RCM)
HQY
HealthEquity Inc
$88.67
+3.07%
HEALTHCARE · Cap: $7.39B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
R1 RCM Inc generates 84% more annual revenue ($2.46B vs $1.34B). HQY leads profitability with a 17.2% profit margin vs -2.5%. HQY appears more attractively valued with a PEG of 1.27. HQY earns a higher WallStSmart Score of 66/100 (B-).
HQY
Strong Buy66
out of 100
Grade: B-
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.0%
Fair Value
$150.82
Current Price
$88.67
$62.15 discount
Margin of Safety
+27.7%
Fair Value
$19.79
Current Price
$14.31
$5.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 29.3%
Earnings expanding 34.4% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Grey zone — moderate risk
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 : HQY
The strongest argument for HQY centers on Operating Margin, EPS Growth. Profitability is solid with margins at 17.2% and operating margin at 29.3%. PEG of 1.27 suggests the stock is reasonably priced for its growth.
Bull Case : RCM
The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.
Bear Case : HQY
The primary concerns for HQY are P/E Ratio, Altman Z-Score.
Bear Case : RCM
The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.
Key Dynamics to Monitor
HQY profiles as a mature 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.
HQY generates stronger free cash flow (97M), providing more financial flexibility.
Bottom Line
HQY scores higher overall (66/100 vs 39/100), backed by strong 17.2% margins. RCM offers better value entry with a 27.7% margin of safety. Both earn "Strong 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.
HealthEquity Inc
HEALTHCARE · HEALTH INFORMATION SERVICES · USA
HealthEquity, Inc. provides technology-enabled service platforms to consumers and employers in the United States. The company is headquartered in Draper, Utah.
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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