Locafy (NASDAQ:LCFY) and Health Catalyst (NASDAQ:HCAT) Head-To-Head Review

Locafy (NASDAQ:LCFY) and Health Catalyst (NASDAQ:HCAT) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Locafy and Health Catalyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Locafy	-58.48%	-64.65%	-36.58%
Health Catalyst	-26.20%	-7.51%	-3.72%

Institutional & Insider Ownership

0.0% of Locafy shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 28.7% of Locafy shares are held by insiders. Comparatively, 2.5% of Health Catalyst shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Locafy has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Locafy and Health Catalyst, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	0	0	0	0	0.00
Health Catalyst	0	2	8	0	2.80

Health Catalyst has a consensus target price of $10.20, suggesting a potential upside of 88.19%. Given Health Catalyst’s stronger consensus rating and higher possible upside, analysts clearly believe Health Catalyst is more favorable than Locafy.

Earnings & Valuation

This table compares Locafy and Health Catalyst”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Locafy	$2.76 million	3.74	-$1.96 million	($1.23)	-6.08
Health Catalyst	$295.94 million	1.11	-$118.15 million	($1.35)	-4.01

Locafy has higher earnings, but lower revenue than Health Catalyst. Locafy is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.

Summary

Health Catalyst beats Locafy on 9 of the 14 factors compared between the two stocks.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.

About Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.