Option Care Health (NASDAQ:OPCH – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both mid-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Option Care Health and Clover Health Investments, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Option Care Health | 0 | 14 | 2 | 0 | 2.12 |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
Option Care Health currently has a consensus target price of $29.48, indicating a potential downside of 7.09%. Clover Health Investments has a consensus target price of $5.00, indicating a potential upside of 1.40%. Given Clover Health Investments’ stronger consensus rating and higher possible upside, analysts plainly believe Clover Health Investments is more favorable than Option Care Health.
Profitability
This table compares Option Care Health and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Option Care Health | 3.68% | 18.74% | 7.25% |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
Risk and Volatility
Option Care Health has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.
Valuation and Earnings
This table compares Option Care Health and Clover Health Investments”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Option Care Health | $5.65 billion | 0.84 | $207.59 million | $1.33 | 23.85 |
| Clover Health Investments | $1.92 billion | 1.36 | -$85.55 million | ($0.05) | -98.62 |
Option Care Health has higher revenue and earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Option Care Health, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
98.0% of Option Care Health shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 1.7% of Option Care Health shares are owned by insiders. Comparatively, 23.5% of Clover Health Investments shares are owned 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.
Summary
Option Care Health beats Clover Health Investments on 8 of the 14 factors compared between the two stocks.
About Option Care Health
Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.
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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