Guardant Health (NASDAQ:GH – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Valuation and Earnings
This table compares Guardant Health and Clover Health Investments”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guardant Health | $982.02 million | 24.93 | -$416.28 million | ($3.49) | -52.28 |
| Clover Health Investments | $1.92 billion | 1.32 | -$85.55 million | ($0.05) | -95.50 |
Clover Health Investments has higher revenue and earnings than Guardant Health. Clover Health Investments is trading at a lower price-to-earnings ratio than Guardant Health, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Guardant Health and Clover Health Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guardant Health | 1 | 0 | 24 | 1 | 2.96 |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
Guardant Health presently has a consensus price target of $191.00, indicating a potential upside of 4.68%. Clover Health Investments has a consensus price target of $5.00, indicating a potential upside of 4.71%. Given Clover Health Investments’ higher possible upside, analysts clearly believe Clover Health Investments is more favorable than Guardant Health.
Volatility & Risk
Guardant Health has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500.
Insider & Institutional Ownership
92.6% of Guardant Health shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 5.6% of Guardant Health shares are owned by company insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by company 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 Guardant Health and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guardant Health | -38.33% | N/A | -25.40% |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
Summary
Clover Health Investments beats Guardant Health on 8 of the 15 factors compared between the two stocks.
About Guardant Health
Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.
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.
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