Phreesia (NYSE:PHR – Get Free Report) and Certara (NASDAQ:CERT – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Risk & Volatility
Phreesia has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Certara has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Phreesia and Certara, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phreesia | 1 | 9 | 9 | 0 | 2.42 |
| Certara | 1 | 6 | 4 | 1 | 2.42 |
Profitability
This table compares Phreesia and Certara’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phreesia | 1.85% | 5.13% | 3.12% |
| Certara | -16.75% | 3.86% | 2.65% |
Institutional & Insider Ownership
92.1% of Phreesia shares are held by institutional investors. Comparatively, 74.0% of Certara shares are held by institutional investors. 5.2% of Phreesia shares are held by company insiders. Comparatively, 1.1% of Certara shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Phreesia and Certara”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phreesia | $495.59 million | 1.44 | $2.31 million | $0.15 | 77.20 |
| Certara | $418.84 million | 2.99 | -$1.60 million | ($0.45) | -18.27 |
Phreesia has higher revenue and earnings than Certara. Certara is trading at a lower price-to-earnings ratio than Phreesia, indicating that it is currently the more affordable of the two stocks.
Summary
Phreesia beats Certara on 12 of the 15 factors compared between the two stocks.
About Phreesia
Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.
About Certara
Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.
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