Critical Comparison: Phreesia (NYSE:PHR) vs. HRsoft (OTCMKTS:WSTM)

Phreesia (NYSE:PHR) and HRsoft (OTCMKTS:WSTM) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Phreesia and HRsoft, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	0	12	0	3.00
HRsoft	0	0	0	0	0.00

Phreesia presently has a consensus target price of $31.00, suggesting a potential upside of 15.06%. Given Phreesia’s stronger consensus rating and higher probable upside, analysts clearly believe Phreesia is more favorable than HRsoft.

Institutional & Insider Ownership

92.1% of Phreesia shares are held by institutional investors. 5.8% of Phreesia shares are held by insiders. Comparatively, 5.1% of HRsoft shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Phreesia and HRsoft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	-20.43%	-32.78%	-22.37%
HRsoft	N/A	N/A	N/A

Valuation & Earnings

This table compares Phreesia and HRsoft”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$356.30 million	4.39	-$136.88 million	($1.47)	-18.33
HRsoft	N/A	N/A	N/A	N/A	N/A

HRsoft has lower revenue, but higher earnings than Phreesia.

Summary

Phreesia beats HRsoft on 6 of the 9 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About HRsoft

HRsoft, Inc. provides compensation planning and total rewards software. Its cloud based SaaS solutions simplify and automate the entire compensation process. The company offers TALENTview Management System, a suite of talent management software solutions for manager effectiveness and business results. It provides COMPview, a compensation management software system that automates, streamlines, and simplifies complex compensation planning by giving managers a decision support tool to help optimize budget allocations, increase accuracy, and align compensation decisions within organizational guidelines. The company also offers REWARDview, an online employee communication portal that gives a proactive year-round, strategic tool to engage and retain employees by providing a better understanding of the full value of their compensation package, including salary, benefits, equity, and more. In addition, it provides STAYview, a cloud-based stay interview system that provides line managers a strategic tool to conduct structured one-on-one conversations with their team; PERFORMview, a cloud-based software, which streamlines and simplifies the performance review process; CONTENTview, a cloud-based employee portal that offers self-service access to online HR content; and RECRUITview, a cloud-based strategic recruiting software that automates, optimizes, and centralizes various recruitment efforts. The company was formerly known as Workstream, Inc. and changed its name to HRsoft, Inc. in March 2014. HRsoft, Inc. was founded in 1996 and is based in Maitland, Florida.