DoubleVerify (NYSE:DV) vs. Health Catalyst (NASDAQ:HCAT) Critical Review

DoubleVerify (NYSE:DV) and Health Catalyst (NASDAQ:HCAT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Earnings and Valuation

This table compares DoubleVerify and Health Catalyst’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DoubleVerify	$590.73 million	5.41	$71.47 million	$0.38	48.97
Health Catalyst	$295.94 million	1.26	-$118.15 million	($1.85)	-3.43

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

Profitability

This table compares DoubleVerify and Health Catalyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DoubleVerify	11.25%	6.46%	5.58%
Health Catalyst	-35.56%	-11.86%	-6.26%

Insider and Institutional Ownership

97.3% of DoubleVerify shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 3.0% of DoubleVerify shares are owned by company insiders. Comparatively, 2.7% of Health Catalyst shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

DoubleVerify has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for DoubleVerify and Health Catalyst, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DoubleVerify	1	4	16	0	2.71
Health Catalyst	0	3	8	0	2.73

DoubleVerify presently has a consensus target price of $35.05, suggesting a potential upside of 88.35%. Health Catalyst has a consensus target price of $12.09, suggesting a potential upside of 90.71%. Given Health Catalyst’s stronger consensus rating and higher probable upside, analysts clearly believe Health Catalyst is more favorable than DoubleVerify.

Summary

DoubleVerify beats Health Catalyst on 11 of the 14 factors compared between the two stocks.

About DoubleVerify

DoubleVerify Holdings, Inc. provides a software platform for digital media measurement, and data analytics in the United States and internationally. The company provides solutions to advertisers that enable advertisers to increase the effectiveness and quality and return on their digital advertising investments. It offers DV Authentic Ad, a metric of digital media quality, which evaluates the existence of fraud-free, brand-suitable, viewability, and geography for each digital ad; DV Authentic Attention that provides actionable, and comprehensive data to drive campaign performance; and Custom Contextual solution, which allows advertisers to match their ads to relevant content to maximize user engagement and drive campaign performance. In addition, the company provides DV Publisher suite, a solution for digital publishers to manage revenue and increase inventory yield by improving video delivery, identifying lost or unfilled sales, and aggregate data across all inventory sources; and DV Pinnacle, a service and analytics platform user interface that allows its customers to adjust and deploy controls for their media plan and track campaign performance metrics across channels, formats, and devices. Further, it offers software solutions are integrated in the digital advertising ecosystem, including programmatic platforms, social media channels, and digital publishers. It serves brands, publishers, and other supply-side customers covering various industry verticals, including consumer packaged goods, financial services, telecommunications, technology, automotive, and healthcare. The company was founded in 2008 and is headquartered in New York, New York.

About Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.