Head to Head Contrast: KWESST Micro Systems (NASDAQ:KWE) vs. Definitive Healthcare (NASDAQ:DH)

KWESST Micro Systems (NASDAQ:KWE) and Definitive Healthcare (NASDAQ:DH) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

KWESST Micro Systems has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

21.4% of KWESST Micro Systems shares are held by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are held by institutional investors. 14.8% of Definitive Healthcare shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares KWESST Micro Systems and Definitive Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KWESST Micro Systems	-464.74%	-412.57%	-155.65%
Definitive Healthcare	-142.38%	1.76%	1.12%

Analyst Ratings

This is a summary of current ratings and target prices for KWESST Micro Systems and Definitive Healthcare, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KWESST Micro Systems	0	0	0	0	0.00
Definitive Healthcare	2	7	3	0	2.08

Definitive Healthcare has a consensus price target of $5.35, indicating a potential upside of 106.56%. Given Definitive Healthcare’s stronger consensus rating and higher possible upside, analysts clearly believe Definitive Healthcare is more favorable than KWESST Micro Systems.

Earnings and Valuation

This table compares KWESST Micro Systems and Definitive Healthcare”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KWESST Micro Systems	$2.26 million	1.78	-$5.47 million	N/A	N/A
Definitive Healthcare	$252.20 million	1.16	-$202.39 million	($3.52)	-0.74

KWESST Micro Systems has higher earnings, but lower revenue than Definitive Healthcare.

Summary

Definitive Healthcare beats KWESST Micro Systems on 10 of the 12 factors compared between the two stocks.

About KWESST Micro Systems

KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.

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.