American Well (NYSE:AMWL – Get Free Report) and CareCloud (NASDAQ:CCLD – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares American Well and CareCloud”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.78 | -$95.70 million | ($3.44) | -3.42 |
| CareCloud | $120.50 million | 0.86 | $10.80 million | $0.13 | 18.73 |
CareCloud has lower revenue, but higher earnings than American Well. American Well is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Well and CareCloud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -27.03% | -24.32% | -17.91% |
| CareCloud | 7.36% | 36.92% | 16.40% |
Analyst Ratings
This is a breakdown of current recommendations for American Well and CareCloud, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
| CareCloud | 0 | 1 | 1 | 0 | 2.50 |
American Well presently has a consensus target price of $12.30, indicating a potential upside of 4.41%. Given American Well’s higher probable upside, analysts plainly believe American Well is more favorable than CareCloud.
Insider & Institutional Ownership
56.0% of American Well shares are owned by institutional investors. Comparatively, 10.2% of CareCloud shares are owned by institutional investors. 12.8% of American Well shares are owned by insiders. Comparatively, 14.8% of CareCloud shares are owned by 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.
Volatility and Risk
American Well has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.
Summary
CareCloud beats American Well on 9 of the 13 factors compared between the two stocks.
About American Well
American Well Corporation, which operates as Amwell, provides digital healthcare technology and services. Its platform helps health systems, health plans and other healthcare organizations offer virtual care and connect patients with clinicians. Amwell’s offerings include telehealth visits and tools for behavioral health, chronic care, primary care and specialty services. Its technology is designed to support care across digital and in-person settings, with clinical services delivered by healthcare providers and partner organizations.
About CareCloud
CareCloud, Inc. provides cloud-based technology and business services to healthcare organizations, including physician practices, hospitals and other medical providers. Its offerings include electronic health records, practice management software, medical billing and revenue cycle management, patient engagement tools, and data and analytics services. The company also provides outsourced administrative and technology services, which can help healthcare providers manage operations such as claims processing and collections.
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