Analyzing biote (NASDAQ:BTMD) and CorVel (NASDAQ:CRVL)

CorVel (NASDAQ:CRVL) and biote (NASDAQ:BTMD) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Risk and Volatility

CorVel has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, biote has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Profitability

This table compares CorVel and biote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CorVel	11.72%	29.92%	17.82%
biote	3.19%	-22.33%	12.10%

Insider & Institutional Ownership

51.4% of CorVel shares are held by institutional investors. Comparatively, 21.7% of biote shares are held by institutional investors. 39.7% of CorVel shares are held by insiders. Comparatively, 32.4% of biote shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for CorVel and biote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CorVel	0	1	0	0	2.00
biote	1	1	1	1	2.50

biote has a consensus target price of $2.50, indicating a potential upside of 61.81%. Given biote’s stronger consensus rating and higher probable upside, analysts clearly believe biote is more favorable than CorVel.

Valuation & Earnings

This table compares CorVel and biote”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CorVel	$958.53 million	3.63	$110.34 million	$2.25	30.32
biote	$192.22 million	0.29	$27.05 million	$0.11	14.05

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

Summary

CorVel beats biote on 10 of the 15 factors compared between the two stocks.

About CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.

About biote

biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.