HealthEquity Inc (HQY)vsR1 RCM Inc (RCM)
HQY
HealthEquity Inc
$81.02
-0.14%
HEALTHCARE · Cap: $6.80B
RCM
R1 RCM Inc
$14.31
0.00%
HEALTHCARE · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
R1 RCM Inc generates 91% more annual revenue ($2.46B vs $1.29B). HQY leads profitability with a 14.9% profit margin vs -2.5%. HQY appears more attractively valued with a PEG of 0.70. HQY earns a higher WallStSmart Score of 64/100 (C+).
HQY
Buy64
out of 100
Grade: C+
RCM
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.6%
Fair Value
$102.02
Current Price
$81.02
$21.00 discount
Intrinsic value data unavailable for RCM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 883.0% YoY
Growing faster than its price suggests
Strong operational efficiency at 24.8%
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
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 EPS Growth, PEG Ratio, Operating Margin. PEG of 0.70 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.
Bear Case : RCM
The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.
Key Dynamics to Monitor
HQY 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.
HQY generates stronger free cash flow (102M), providing more financial flexibility.
Bottom Line
HQY scores higher overall (64/100 vs 39/100). 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.
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 leading provider of technology-enabled revenue cycle management services, specializing in optimizing the financial performance of healthcare organizations. By leveraging advanced analytics and industry expertise, R1 RCM delivers comprehensive solutions that streamline patient billing processes and enhance operational efficiencies across a diverse portfolio of clients, including hospitals and outpatient facilities. The company's innovative approach not only improves revenue capture but also elevates the patient experience, positioning R1 RCM as a key player in the evolving healthcare landscape. With a robust growth strategy focused on expanding its service offerings and market reach, R1 RCM is poised to capitalize on the increasing demand for effective revenue cycle solutions in the healthcare sector.
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