Critical Analysis: Great Elm Group (NASDAQ:GEG) and Definitive Healthcare (NASDAQ:DH)

Great Elm Group (NASDAQ:GEGGet Free Report) and Definitive Healthcare (NASDAQ:DHGet Free Report) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Great Elm Group and Definitive Healthcare’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Elm Group 0.71% 0.19% 0.10%
Definitive Healthcare -142.38% 1.76% 1.12%

Earnings and Valuation

This table compares Great Elm Group and Definitive Healthcare”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Great Elm Group $19.20 million 2.79 -$1.39 million $0.00 -189,000.00
Definitive Healthcare $255.85 million 1.46 -$202.39 million ($3.10) -1.04

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

Risk and Volatility

Great Elm Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Great Elm Group and Definitive Healthcare, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Elm Group 0 0 0 0 0.00
Definitive Healthcare 2 6 3 0 2.09

Definitive Healthcare has a consensus target price of $5.72, indicating a potential upside of 77.16%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Definitive Healthcare is more favorable than Great Elm Group.

Institutional and Insider Ownership

52.8% of Great Elm Group shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 51.8% of Great Elm Group shares are held by company insiders. Comparatively, 14.8% of Definitive Healthcare shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Definitive Healthcare beats Great Elm Group on 9 of the 14 factors compared between the two stocks.

About Great Elm Group

(Get Free Report)

Great Elm Group, Inc. operates as a asset management company. The company engages in credit, real estate, and finance businesses. It is also involved in business development related activities and offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was incorporated in 1994 and is headquartered in Waltham, Massachusetts.

About Definitive Healthcare

(Get Free Report)

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

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