Head to Head Review: Clover Health Investments (NASDAQ:CLOV) and U.S. Physical Therapy (NYSE:USPH)

Clover Health Investments (NASDAQ:CLOV) and U.S. Physical Therapy (NYSE:USPH) are both healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares Clover Health Investments and U.S. Physical Therapy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-0.74%	-4.20%	-2.28%
U.S. Physical Therapy	3.97%	9.39%	3.65%

Institutional and Insider Ownership

19.8% of Clover Health Investments shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by company insiders. Comparatively, 2.4% of U.S. Physical Therapy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Clover Health Investments and U.S. Physical Therapy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.92 billion	1.23	-$85.55 million	($0.05)	-89.20
U.S. Physical Therapy	$780.99 million	1.57	$39.58 million	$0.17	484.05

U.S. Physical Therapy has lower revenue, but higher earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than U.S. Physical Therapy, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Clover Health Investments has a beta of 2.47, suggesting that its stock price is 147% more volatile than the S&P 500. Comparatively, U.S. Physical Therapy has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Clover Health Investments and U.S. Physical Therapy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	2	0	2.17
U.S. Physical Therapy	0	2	4	1	2.86

Clover Health Investments currently has a consensus price target of $4.75, suggesting a potential upside of 6.50%. U.S. Physical Therapy has a consensus price target of $98.25, suggesting a potential upside of 19.40%. Given U.S. Physical Therapy’s stronger consensus rating and higher possible upside, analysts clearly believe U.S. Physical Therapy is more favorable than Clover Health Investments.

Summary

U.S. Physical Therapy beats Clover Health Investments on 11 of the 15 factors compared between the two stocks.

About Clover Health Investments

Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.

About U.S. Physical Therapy

U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics. The company operates through Physical Therapy Operations and Industrial Injury Prevention Services segments. The company provides pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors. U.S. Physical Therapy, Inc. was founded in 1990 and is based in Houston, Texas.