Contrasting Definitive Healthcare (NASDAQ:DH) and Ceridian HCM (NYSE:CDAY)

Definitive Healthcare (NASDAQ:DH) and Ceridian HCM (NYSE:CDAY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Definitive Healthcare and Ceridian HCM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Definitive Healthcare	2	6	3	0	2.09
Ceridian HCM	0	0	0	0	0.00

Definitive Healthcare currently has a consensus price target of $5.72, indicating a potential upside of 20.57%. Given Definitive Healthcare’s stronger consensus rating and higher possible upside, equities analysts clearly believe Definitive Healthcare is more favorable than Ceridian HCM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Definitive Healthcare	-142.38%	1.76%	1.12%
Ceridian HCM	0.28%	2.03%	0.51%

Volatility & Risk

Definitive Healthcare has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

98.7% of Definitive Healthcare shares are held by institutional investors. 14.8% of Definitive Healthcare shares are held by insiders. Comparatively, 4.5% of Ceridian HCM shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Definitive Healthcare and Ceridian HCM”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Definitive Healthcare	$251.41 million	2.18	-$202.39 million	($3.10)	-1.53
Ceridian HCM	$1.45 billion	7.62	-$73.40 million	$0.03	2,358.00

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

About Definitive Healthcare

Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various 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 firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.

About Ceridian HCM

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.