Health Catalyst (NASDAQ:HCAT – Get Free Report) and Blend Labs (NYSE:BLND – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Insider and Institutional Ownership
85.0% of Health Catalyst shares are owned by institutional investors. Comparatively, 52.6% of Blend Labs shares are owned by institutional investors. 2.7% of Health Catalyst shares are owned by company insiders. Comparatively, 11.8% of Blend Labs shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Health Catalyst and Blend Labs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health Catalyst | 0 | 4 | 8 | 0 | 2.67 |
| Blend Labs | 0 | 1 | 5 | 0 | 2.83 |
Valuation and Earnings
This table compares Health Catalyst and Blend Labs”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health Catalyst | $299.48 million | 1.70 | -$118.15 million | ($1.85) | -4.65 |
| Blend Labs | $152.12 million | 5.52 | -$178.69 million | ($0.58) | -5.74 |
Health Catalyst has higher revenue and earnings than Blend Labs. Blend Labs is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Health Catalyst and Blend Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health Catalyst | -28.87% | -9.38% | -4.90% |
| Blend Labs | -77.63% | N/A | -40.93% |
Risk and Volatility
Health Catalyst has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Summary
Health Catalyst beats Blend Labs on 9 of the 14 factors compared between the two stocks.
About Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
About Blend Labs
Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company's Blend Builder Platform offers a suite of products that powers digital-first consumer journeys for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts; and offers mortgage products to facilitate the homeownership journey for consumers comprising close, income verification for mortgage, homeowners' insurance, and realty. It also offers verification components to automate confirmation tasks that are needed to underwrite a loan or approve the opening of a new deposit account; decisioning components to reduce the need for human intervention by automatically applying business rules throughout an application workflow configured by a financial services firm; workflow intelligence components to manage data collection and automate tasks throughout the loan origination process; and marketplace components to enable consumers to shop for products and services presented at the precise moment of need during an application for a loan. In addition, the company, through its subsidiary, offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and provides professional and consulting services. It serves banks, credit unions, fintechs, and non-bank mortgage lenders. The company was incorporated in 2012 and is headquartered in San Francisco, California.
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