Critical Analysis: Waystar (WAY) vs. Its Peers

Waystar (NASDAQ:WAY) is one of 94 publicly-traded companies in the “Computer integrated systems design” industry, but how does it contrast to its peers? We will compare Waystar to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Waystar and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waystar	0	0	12	1	3.08
Waystar Competitors	591	2285	3874	127	2.51

Waystar presently has a consensus price target of $40.50, suggesting a potential upside of 1.22%. As a group, “Computer integrated systems design” companies have a potential upside of 20.47%. Given Waystar’s peers higher probable upside, analysts plainly believe Waystar has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Waystar and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Waystar	$975.19 million	-$51.33 million	444.56
Waystar Competitors	$1.86 billion	$24.52 million	52.70

Waystar’s peers have higher revenue and earnings than Waystar. Waystar is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Waystar and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Waystar	N/A	N/A	N/A
Waystar Competitors	-168.48%	-246.80%	-16.41%

Institutional and Insider Ownership

54.0% of shares of all “Computer integrated systems design” companies are held by institutional investors. 18.4% of shares of all “Computer integrated systems design” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Waystar beats its peers on 7 of the 12 factors compared.

Waystar Company Profile

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.