Analyzing American Well (NYSE:AMWL) and Clover Health Investments (NASDAQ:CLOV)

Clover Health Investments (NASDAQ:CLOV) and American Well (NYSE:AMWL) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Clover Health Investments and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-3.29%	-16.79%	-9.95%
American Well	-42.80%	-39.80%	-29.38%

Volatility & Risk

Clover Health Investments has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Clover Health Investments and American Well, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	2	2	1	2.50
American Well	1	6	1	0	2.00

Clover Health Investments currently has a consensus price target of $3.93, indicating a potential upside of 67.02%. American Well has a consensus price target of $8.33, indicating a potential upside of 110.44%. Given American Well’s higher possible upside, analysts plainly believe American Well is more favorable than Clover Health Investments.

Valuation & Earnings

This table compares Clover Health Investments and American Well”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.37 billion	0.89	-$43.01 million	($0.11)	-21.36
American Well	$254.36 million	0.25	-$208.14 million	($7.20)	-0.55

Clover Health Investments has higher revenue and earnings than American Well. Clover Health Investments is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 56.1% of American Well shares are held by institutional investors. 24.1% of Clover Health Investments shares are held by company insiders. Comparatively, 12.8% of American Well shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Clover Health Investments beats American Well on 12 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 American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.