HealthStream (NASDAQ:HSTM) vs. Viomi Technology (NASDAQ:VIOT) Critical Survey

Viomi Technology (NASDAQ:VIOT) and HealthStream (NASDAQ:HSTM) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viomi Technology	$290.30 million	0.49	$8.69 million	($0.37)	-5.62
HealthStream	$291.65 million	2.44	$20.01 million	$0.68	35.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viomi Technology	N/A	N/A	N/A
HealthStream	6.93%	5.82%	4.07%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Viomi Technology and HealthStream, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viomi Technology	1	0	0	0	1.00
HealthStream	0	3	1	0	2.25

HealthStream has a consensus target price of $28.00, indicating a potential upside of 16.62%. Given HealthStream’s stronger consensus rating and higher possible upside, analysts plainly believe HealthStream is more favorable than Viomi Technology.

Insider & Institutional Ownership

1.2% of Viomi Technology shares are held by institutional investors. Comparatively, 69.6% of HealthStream shares are held by institutional investors. 34.3% of Viomi Technology shares are held by insiders. Comparatively, 20.6% of HealthStream 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.

Volatility and Risk

Viomi Technology has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Summary

HealthStream beats Viomi Technology on 13 of the 14 factors compared between the two stocks.

About Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.

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.