Trivago N.V. ADS (NASDAQ:TRVG) and HealthStream (NASDAQ:HSTM) Financial Analysis

HealthStream (NASDAQ:HSTM) and Trivago N.V. ADS (NASDAQ:TRVG) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for HealthStream and Trivago N.V. ADS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthStream	0	2	2	1	2.80
Trivago N.V. ADS	0	3	1	0	2.25

HealthStream currently has a consensus target price of $31.00, indicating a potential upside of 6.09%. Trivago N.V. ADS has a consensus target price of $4.35, indicating a potential upside of 32.62%. Given Trivago N.V. ADS’s higher possible upside, analysts clearly believe Trivago N.V. ADS is more favorable than HealthStream.

Insider and Institutional Ownership

69.6% of HealthStream shares are held by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are held by institutional investors. 20.5% of HealthStream shares are held by company insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares HealthStream and Trivago N.V. ADS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthStream	6.89%	5.70%	3.99%
Trivago N.V. ADS	-4.93%	-0.46%	-0.30%

Volatility and Risk

HealthStream has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares HealthStream and Trivago N.V. ADS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthStream	$291.65 million	2.97	$20.01 million	$0.67	43.61
Trivago N.V. ADS	$498.74 million	0.46	-$25.64 million	($0.01)	-328.00

HealthStream has higher earnings, but lower revenue than Trivago N.V. ADS. Trivago N.V. ADS is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.

Summary

HealthStream beats Trivago N.V. ADS on 12 of the 15 factors compared between the two stocks.

About HealthStream

HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.

About Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.