Analyzing CEVA (NASDAQ:CEVA) and HealthStream (NASDAQ:HSTM)

CEVA (NASDAQ:CEVAGet Rating) and HealthStream (NASDAQ:HSTMGet Rating) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Risk & Volatility

CEVA has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

85.4% of CEVA shares are held by institutional investors. Comparatively, 71.1% of HealthStream shares are held by institutional investors. 2.8% of CEVA shares are held by insiders. Comparatively, 21.2% of HealthStream shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for CEVA and HealthStream, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEVA 0 0 2 0 3.00
HealthStream 0 0 0 0 N/A

CEVA currently has a consensus target price of $34.17, indicating a potential upside of 25.34%. HealthStream has a consensus target price of $23.00, indicating a potential downside of 7.93%. Given CEVA’s higher possible upside, equities research analysts plainly believe CEVA is more favorable than HealthStream.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEVA $122.71 million 5.15 $400,000.00 ($0.91) -29.96
HealthStream $256.71 million 2.98 $5.84 million $0.30 83.27

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

Profitability

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

Net Margins Return on Equity Return on Assets
CEVA -15.70% 2.02% 1.71%
HealthStream 3.52% 2.75% 1.88%

Summary

HealthStream beats CEVA on 8 of the 13 factors compared between the two stocks.

About CEVA

(Get Rating)

CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI). The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. The company was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. CEVA, Inc. was incorporated in 1999 and is headquartered in Rockville, Maryland.

About HealthStream

(Get Rating)

HealthStream, Inc. provides workforce and provider solutions for healthcare organizations in the United States. It operates through two segments, Workforce Solutions and Provider Solutions. The company offers workforce solutions, including software-as-a-service (SaaS) based services and subscription-based solutions to meet the range of its clinical development, talent management, training, education, certification, scheduling, competency assessment, performance appraisal, and other needs, as well as implementation and account management services. It also provides applications for learning, performance appraisal, competency management, disclosure management, clinical assessment and development, simulation-based education, quality management, and industry training. In addition, the company offers VerityStream that delivers enterprise-class solutions to transform the healthcare provider experience for ambulatory surgery centers, urgent care facilities, clinics, medical groups, and other healthcare organizations; EchoCredentialing and MSOW platforms that manage medical staff credentialing, enrollment, and privileging processes for hospitals; and EchoOneApp, a provider enrollment platform for medical groups. Further, it provides CredentialMyDoc, a credentialing and enrollment SaaS solution for medical groups and surgery centers; CredentialStream, a SaaS-based provider credentialing, privileging, and enrollment solution; and NurseGrid Mobile for nurse managers. The company offers its solutions in healthcare industry companies that include private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through direct sales teams. HealthStream, Inc. was incorporated in 1990 and is headquartered in Nashville, Tennessee.

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