Head to Head Analysis: HealthStream (NASDAQ:HSTM) versus CyberAgent (OTCMKTS:CYGIY)

HealthStream (NASDAQ:HSTM) and CyberAgent (OTCMKTS:CYGIY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Volatility & Risk

HealthStream has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Institutional and Insider Ownership

69.6% of HealthStream shares are owned by institutional investors. 20.4% of HealthStream shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares HealthStream and CyberAgent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthStream	$304.06 million	2.84	$18.34 million	$0.67	44.07
CyberAgent	$5.86 billion	0.74	$212.18 million	$0.27	15.93

CyberAgent has higher revenue and earnings than HealthStream. CyberAgent is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.

Dividends

HealthStream pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. CyberAgent pays an annual dividend of $0.03 per share and has a dividend yield of 0.7%. HealthStream pays out 20.9% of its earnings in the form of a dividend. CyberAgent pays out 11.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HealthStream has raised its dividend for 2 consecutive years. CyberAgent is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares HealthStream and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HealthStream	6.39%	6.47%	4.44%
CyberAgent	4.60%	18.43%	9.35%

Analyst Ratings

This is a breakdown of current ratings and target prices for HealthStream and CyberAgent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthStream	0	3	0	0	2.00
CyberAgent	0	1	0	0	2.00

HealthStream currently has a consensus price target of $27.00, suggesting a potential downside of 8.57%. Given HealthStream’s higher possible upside, analysts clearly believe HealthStream is more favorable than CyberAgent.

Summary

HealthStream beats CyberAgent on 9 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 CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.