Definitive Healthcare (NASDAQ:DH – Get Rating) and Consensus Cloud Solutions (NASDAQ:CCSI – Get Rating) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
92.8% of Consensus Cloud Solutions shares are held by institutional investors. 17.5% of Definitive Healthcare shares are held by company insiders. Comparatively, 18.3% of Consensus Cloud Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Definitive Healthcare and Consensus Cloud Solutions’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $222.65 million | 5.73 | -$22.25 million | ($0.10) | -118.59 |
| Consensus Cloud Solutions | $362.42 million | 2.15 | $72.71 million | $3.71 | 10.55 |
Volatility and Risk
Definitive Healthcare has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Consensus Cloud Solutions has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Definitive Healthcare and Consensus Cloud Solutions, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 0 | 4 | 3 | 0 | 2.43 |
| Consensus Cloud Solutions | 0 | 2 | 2 | 0 | 2.50 |
Definitive Healthcare currently has a consensus target price of $15.71, indicating a potential upside of 32.50%. Consensus Cloud Solutions has a consensus target price of $60.40, indicating a potential upside of 54.28%. Given Consensus Cloud Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Consensus Cloud Solutions is more favorable than Definitive Healthcare.
Profitability
This table compares Definitive Healthcare and Consensus Cloud Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -2.71% | 0.35% | 0.25% |
| Consensus Cloud Solutions | 20.07% | -27.60% | 12.92% |
Summary
Consensus Cloud Solutions beats Definitive Healthcare on 11 of the 14 factors compared between the two stocks.
About Definitive Healthcare
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. was founded in 2011 and is headquartered in Framingham, Massachusetts.
About Consensus Cloud Solutions
Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. Its products and solutions include eFax, an online faxing solution, as well as MyFax, MetroFax, Sfax, SRfax, and other brands; eFax Corporate, a digital cloud-fax technology; jsign, which provides electronic and digital signature solutions; Unite, a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (EHR) system or stand-alone if no EHR is present; Signal, a solution that integrates with a hospital's EHR system and uses rules-based triggering logic to automatically send admit, discharge, and transfer notifications using cloud fax and direct secure messaging technology; and Clarity that transforms unstructured documents into structured actionable data. It serves healthcare, education, law, and financial services industries. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.
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