WallStSmart

R1 RCM Inc (RCM)vsWaystar Holding Corp. Common Stock (WAY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

R1 RCM Inc generates 113% more annual revenue ($2.46B vs $1.16B). WAY leads profitability with a 10.9% profit margin vs -2.5%. WAY earns a higher WallStSmart Score of 63/100 (C+).

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 6.3Quality: 5.0

WAY

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 6.5Value: 5.0Quality: 6.0
Piotroski: 2/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RCMUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$27.45

Current Price

$14.31

$13.14 discount

UndervaluedFair: $27.45Overvalued
WAYUndervalued (+8.3%)

Margin of Safety

+8.3%

Fair Value

$25.87

Current Price

$19.90

$5.97 discount

UndervaluedFair: $25.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

WAY5 strengths · Avg: 8.8/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Operating MarginProfitability
25.6%8/10

Strong operational efficiency at 25.6%

Revenue GrowthGrowth
22.4%8/10

Revenue surging 22.4% year-over-year

EPS GrowthGrowth
37.5%8/10

Earnings expanding 37.5% YoY

Areas to Watch

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%

WAY4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : RCM

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

Bull Case : WAY

The strongest argument for WAY centers on Price/Book, Debt/Equity, Operating Margin. Revenue growth of 22.4% demonstrates continued momentum.

Bear Case : RCM

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

Bear Case : WAY

The primary concerns for WAY are P/E Ratio, Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

RCM profiles as a turnaround stock while WAY is a growth play — different risk/reward profiles.

WAY is growing revenue faster at 22.4% — sustainability is the question.

WAY generates stronger free cash flow (70M), providing more financial flexibility.

Monitor HEALTH INFORMATION SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WAY scores higher overall (63/100 vs 39/100) and 22.4% revenue growth. RCM offers better value entry with a 47.9% margin of safety. 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.

R1 RCM Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

R1 RCM Inc (RCM) is a premier provider of technology-driven revenue cycle management services that enhance the financial performance of healthcare organizations nationwide. Utilizing cutting-edge analytics and industry insights, R1 RCM delivers holistic solutions that streamline billing processes and boost operational efficiencies for a wide range of clients, including hospitals and outpatient facilities. The company’s innovative methodologies not only optimize revenue capture but also significantly improve patient experiences, solidifying its position as a pivotal player in the dynamic healthcare landscape. With a strategic focus on expanding its service capabilities and market penetration, R1 RCM is well-positioned to meet the surging demand for sophisticated revenue cycle solutions within the healthcare industry.

Waystar Holding Corp. Common Stock

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Waystar Holding Corp. The company is headquartered in Lehi, Utah.

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