WallStSmart

HealthStream Inc (HSTM)vsR1 RCM Inc (RCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

R1 RCM Inc generates 710% more annual revenue ($2.46B vs $304.06M). HSTM leads profitability with a 6.0% profit margin vs -2.5%. RCM appears more attractively valued with a PEG of 2.06. HSTM earns a higher WallStSmart Score of 47/100 (D+).

HSTM

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 4.0Value: 7.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.56

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSTMSignificantly Overvalued (-385.8%)

Margin of Safety

-385.8%

Fair Value

$4.15

Current Price

$20.97

$16.82 premium

UndervaluedFair: $4.15Overvalued

Intrinsic value data unavailable for RCM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSTM2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

RCM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

HSTM4 concerns · Avg: 3.5/10
PEG RatioValuation
2.324/10

Expensive relative to growth rate

P/E RatioValuation
33.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$603.45M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

RCM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-2.2%2/10

ROE of -2.2% — below average capital efficiency

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : HSTM

The strongest argument for HSTM centers on Debt/Equity, Price/Book.

Bull Case : RCM

The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.

Bear Case : HSTM

The primary concerns for HSTM are PEG Ratio, P/E Ratio, Market Cap.

Bear Case : RCM

The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.

Key Dynamics to Monitor

HSTM 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.

RCM generates stronger free cash flow (60M), providing more financial flexibility.

Bottom Line

HSTM scores higher overall (47/100 vs 39/100). Both earn "Hold" 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.

HealthStream Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

HealthStream, Inc. provides provider and staff solutions for healthcare organizations in the United States. The company is headquartered in Nashville, Tennessee.

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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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