Comparing KE (NYSE:BEKE) & HealthStream (NASDAQ:HSTM)

KE (NYSE:BEKE) and HealthStream (NASDAQ:HSTM) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$13.52 billion	1.44	$428.13 million	$0.42	41.44
HealthStream	$304.06 million	2.74	$18.34 million	$0.67	42.51

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

Dividends

KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.3%. HealthStream pays an annual dividend of $0.14 per share and has a dividend yield of 0.5%. KE pays out 54.8% of its earnings in the form of a dividend. HealthStream pays out 20.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HealthStream has raised its dividend for 2 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KE	3.77%	5.47%	3.10%
HealthStream	6.39%	6.47%	4.44%

Risk & Volatility

KE has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for KE and HealthStream, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	1	6	0	2.86
HealthStream	0	3	0	0	2.00

KE presently has a consensus target price of $23.07, indicating a potential upside of 32.53%. HealthStream has a consensus target price of $24.00, indicating a potential downside of 15.73%. Given KE’s stronger consensus rating and higher possible upside, research analysts plainly believe KE is more favorable than HealthStream.

Institutional and Insider Ownership

39.3% of KE shares are owned by institutional investors. Comparatively, 69.6% of HealthStream shares are owned by institutional investors. 6.8% of KE shares are owned by insiders. Comparatively, 20.4% of HealthStream shares are owned 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.

Summary

HealthStream beats KE on 11 of the 17 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of 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.