Comparing Weave Communications (NYSE:WEAV) and Healthcare Triangle (NASDAQ:HCTI)

Healthcare Triangle (NASDAQ:HCTI) and Weave Communications (NYSE:WEAV) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Healthcare Triangle and Weave Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Triangle	1	0	0	0	1.00
Weave Communications	1	4	3	0	2.25

Weave Communications has a consensus target price of $7.84, indicating a potential upside of 7.25%. Given Weave Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Weave Communications is more favorable than Healthcare Triangle.

Institutional & Insider Ownership

0.3% of Healthcare Triangle shares are held by institutional investors. Comparatively, 86.8% of Weave Communications shares are held by institutional investors. 0.1% of Healthcare Triangle shares are held by insiders. Comparatively, 16.4% of Weave Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Healthcare Triangle has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares Healthcare Triangle and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Triangle	-66.85%	-125.45%	-36.06%
Weave Communications	-7.97%	-21.14%	-8.41%

Valuation & Earnings

This table compares Healthcare Triangle and Weave Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Triangle	$13.89 million	0.14	-$9.48 million	($33.52)	-0.03
Weave Communications	$239.02 million	2.45	-$28.05 million	($0.25)	-29.24

Healthcare Triangle has higher earnings, but lower revenue than Weave Communications. Weave Communications is trading at a lower price-to-earnings ratio than Healthcare Triangle, indicating that it is currently the more affordable of the two stocks.

Summary

Weave Communications beats Healthcare Triangle on 12 of the 14 factors compared between the two stocks.

About Healthcare Triangle

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.