Comparing Definitive Healthcare (NASDAQ:DH) and ShotSpotter (NASDAQ:SSTI)

Definitive Healthcare (NASDAQ:DHGet Rating) and ShotSpotter (NASDAQ:SSTIGet Rating) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Definitive Healthcare and ShotSpotter, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Definitive Healthcare 0 6 6 0 2.50
ShotSpotter 0 2 2 0 2.50

Definitive Healthcare currently has a consensus target price of $36.10, indicating a potential upside of 84.65%. ShotSpotter has a consensus target price of $44.50, indicating a potential upside of 76.73%. Given Definitive Healthcare’s higher probable upside, analysts clearly believe Definitive Healthcare is more favorable than ShotSpotter.

Earnings and Valuation

This table compares Definitive Healthcare and ShotSpotter’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Definitive Healthcare $166.15 million 11.49 -$51.02 million N/A N/A
ShotSpotter $58.15 million 5.26 -$4.43 million ($0.35) -71.94

ShotSpotter has lower revenue, but higher earnings than Definitive Healthcare.

Profitability

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

Net Margins Return on Equity Return on Assets
Definitive Healthcare N/A 0.80% 0.56%
ShotSpotter -6.41% -5.61% -2.78%

Institutional & Insider Ownership

99.4% of Definitive Healthcare shares are held by institutional investors. Comparatively, 59.2% of ShotSpotter shares are held by institutional investors. 17.5% of Definitive Healthcare shares are held by insiders. Comparatively, 10.6% of ShotSpotter shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Definitive Healthcare beats ShotSpotter on 9 of the 10 factors compared between the two stocks.

About Definitive Healthcare (Get Rating)

Definitive Healthcare Corp., together with its subsidiaries, provides healthcare commercial intelligence in the United States. Its solutions provide information on healthcare providers and their activities to help its customers in the area ranging from product development to go-to-market planning, and sales and marketing execution. The company's platform offers 16 intelligence modules that cover 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 companies, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. cwas founded in 2011 and is headquartered in Framingham, Massachusetts.

About ShotSpotter (Get Rating)

ShotSpotter, Inc. provides precision-policing and security solutions for law enforcement and security personnel in the United States, South Africa, and the Bahamas. Its solutions include ShotSpotter Respond, a public safety solution, which serves cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and ShotSpotter Connect, a patrol management software to help plan directed patrols and tactics to deter a broad set of crime types. The company also provides ShotSpotter SecureCampus and ShotSpotter SiteSecure that helps the law enforcement and security personnel serving universities, corporate campuses, big-box retail, malls, and key infrastructure or transportation centers to mitigate risk and enhance security by notifying authorities of a outdoor gunfire incident and saving minutes for first responders to arrive. In addition, it offers ShotSpotter Investigate, a cloud-based investigative platform to help law enforcement agencies modernize every phase of an investigation and accelerate case work with easy-to-use software tools. Further, it provides ShotSpotter Labs, a technology to adapt and extend commercial technology to address significant wildlife and environmental issues. The company sells its solutions through its direct sales teams. ShotSpotter, Inc. was founded in 1996 and is headquartered in Fremont, California.

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