CareCloud (NASDAQ:CCLD) and Rennova Health (OTCMKTS:RNVA) Critical Analysis

CareCloud (NASDAQ:CCLD) and Rennova Health (OTCMKTS:RNVA) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares CareCloud and Rennova Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareCloud	7.87%	24.05%	16.38%
Rennova Health	N/A	N/A	N/A

Earnings & Valuation

This table compares CareCloud and Rennova Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$120.50 million	0.75	$10.80 million	$0.11	19.27
Rennova Health	$18.69 million	0.00	-$7.73 million	N/A	N/A

CareCloud has higher revenue and earnings than Rennova Health.

Risk and Volatility

CareCloud has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Rennova Health has a beta of 22.02, meaning that its share price is 2,102% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CareCloud and Rennova Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Rennova Health	0	0	0	0	0.00

CareCloud currently has a consensus target price of $3.25, indicating a potential upside of 53.30%. Given CareCloud’s stronger consensus rating and higher probable upside, research analysts plainly believe CareCloud is more favorable than Rennova Health.

Institutional and Insider Ownership

10.2% of CareCloud shares are held by institutional investors. 14.8% of CareCloud shares are held by company insiders. Comparatively, 20.2% of Rennova Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

CareCloud beats Rennova Health on 9 of the 11 factors compared between the two stocks.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

About Rennova Health

Rennova Health, Inc., together with its subsidiaries, provides health care services in the United States. It owns one operating hospital in Oneida, Tennessee; and a rural clinic in Williamsburg, Kentucky. The company is based in West Palm Beach, Florida.