MarketWise (NASDAQ:MKTW – Get Free Report) and Definitive Healthcare (NASDAQ:DH – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Profitability
This table compares MarketWise and Definitive Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MarketWise | 1.20% | -1.89% | 1.50% |
| Definitive Healthcare | -142.38% | 1.76% | 1.12% |
Earnings & Valuation
This table compares MarketWise and Definitive Healthcare”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MarketWise | $423.38 million | 0.44 | $1.78 million | $0.12 | 4.74 |
| Definitive Healthcare | $255.85 million | 1.97 | -$202.39 million | ($3.10) | -1.41 |
Analyst Recommendations
This is a summary of current ratings and target prices for MarketWise and Definitive Healthcare, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MarketWise | 0 | 1 | 0 | 0 | 2.00 |
| Definitive Healthcare | 1 | 7 | 3 | 0 | 2.18 |
MarketWise currently has a consensus target price of $2.00, suggesting a potential upside of 251.37%. Definitive Healthcare has a consensus target price of $5.72, suggesting a potential upside of 31.24%. Given MarketWise’s higher probable upside, equities analysts clearly believe MarketWise is more favorable than Definitive Healthcare.
Risk and Volatility
MarketWise has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
Institutional & Insider Ownership
23.0% of MarketWise shares are owned by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are owned by institutional investors. 28.6% of MarketWise shares are owned by company insiders. Comparatively, 14.8% of Definitive Healthcare 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.
Summary
MarketWise beats Definitive Healthcare on 8 of the 14 factors compared between the two stocks.
About MarketWise
MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.
About Definitive Healthcare
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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