HealthStream (HSTM) versus TeamHealth (TMH) Critical Review

TeamHealth (NYSE: TMH) and HealthStream (NASDAQ:HSTM) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider & Institutional Ownership

74.3% of HealthStream shares are owned by institutional investors. 1.3% of TeamHealth shares are owned by company insiders. Comparatively, 21.1% of HealthStream shares are owned by company 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for TeamHealth and HealthStream, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TeamHealth 0 1 0 0 2.00
HealthStream 0 4 2 0 2.33

TeamHealth presently has a consensus target price of $43.50, indicating a potential upside of 0.00%. HealthStream has a consensus target price of $24.40, indicating a potential upside of 4.95%. Given HealthStream’s stronger consensus rating and higher possible upside, analysts clearly believe HealthStream is more favorable than TeamHealth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TeamHealth N/A N/A N/A $0.26 167.31
HealthStream $225.97 million 3.28 $3.75 million $0.18 129.17

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


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

Net Margins Return on Equity Return on Assets
TeamHealth 0.92% 5.98% 0.99%
HealthStream 2.36% 2.46% 1.79%


HealthStream beats TeamHealth on 8 of the 11 factors compared between the two stocks.

TeamHealth Company Profile

Team Health Holdings, Inc. is a United States-based physician services company. The Company supplies outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States. It operates through four segments: Hospital Based Services, IPC Healthcare, Specialty Services and Other Services. The Hospital Based Services segment provides healthcare service programs to users of healthcare services on a fee for service, and on a cost plus or contract basis. The IPC Healthcare segment provides acute hospital medicine and post-acute provider service programs to users of healthcare services. The Specialty Services segment provides healthcare service programs to users of healthcare services in an outpatient setting or in a non-hospital-based environment. The Other Services segment is an aggregation of locums staffing, scribes, and billing, collection and consulting services that provides a range of other healthcare services.

HealthStream Company Profile

HealthStream, Inc. (HealthStream) provides workforce, patient experience and provider solutions for healthcare organizations. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions and HealthStream Provider Solutions. HealthStream’s products and services are organized into three segments: Workforce Solutions, Patient Experience Solutions, and Provider Solutions. HealthStream’s solutions are provided to a range of customers within the healthcare industry across the continuum of care. Delivered primarily as Software-as-a-Service (SaaS), the Company’s solutions focus on challenges facing the healthcare workforce and healthcare organizations, including the need to manage, retain, engage and develop healthcare workforce talent; meet compliance requirements; manage ongoing medical staff credentialing and privileging processes, and deliver patient experiences of care in healthcare organizations.

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