Head-To-Head Analysis: Firefly Neuroscience (NASDAQ:AIFF) and HealthStream (NASDAQ:HSTM)

HealthStream (NASDAQ:HSTM) and Firefly Neuroscience (NASDAQ:AIFF) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

69.6% of HealthStream shares are owned by institutional investors. Comparatively, 5.0% of Firefly Neuroscience shares are owned by institutional investors. 20.4% of HealthStream shares are owned by company insiders. Comparatively, 6.9% of Firefly Neuroscience shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HealthStream	6.25%	6.37%	4.37%
Firefly Neuroscience	-506.23%	-90.17%	-72.05%

Earnings and Valuation

This table compares HealthStream and Firefly Neuroscience”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HealthStream	$304.06 million	3.05	$18.34 million	$0.72	44.05
Firefly Neuroscience	$1.14 million	13.07	-$19.88 million	($0.59)	-1.61

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

Volatility & Risk

HealthStream has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Firefly Neuroscience has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for HealthStream and Firefly Neuroscience, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HealthStream	0	4	1	0	2.20
Firefly Neuroscience	1	0	0	0	1.00

HealthStream presently has a consensus target price of $36.00, suggesting a potential upside of 13.51%. Given HealthStream’s stronger consensus rating and higher probable upside, research analysts clearly believe HealthStream is more favorable than Firefly Neuroscience.

Summary

HealthStream beats Firefly Neuroscience on 12 of the 14 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 Firefly Neuroscience

Firefly Neuroscience, Inc., a medical technology and artificial intelligence company, provides neuroscientific solutions that improve outcomes for patients with mental illnesses and neurological disorders. The company offers Brain Network Analytics, a software that focuses on diagnostic and treatment for people suffering from mental illnesses and cognitive disorders, including depression, dementia, anxiety disorders, concussions, and attention-deficit/hyperactivity disorder. It serves pharmaceutical companies and medical practitioners. Firefly Neuroscience, Inc. is based in Toronto, Canada.