CorVel (NASDAQ:CRVL – Get Free Report) and Guardant Health (NASDAQ:GH – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
51.4% of CorVel shares are held by institutional investors. Comparatively, 92.6% of Guardant Health shares are held by institutional investors. 39.7% of CorVel shares are held by insiders. Comparatively, 5.6% of Guardant Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for CorVel and Guardant Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
| Guardant Health | 1 | 0 | 23 | 1 | 2.96 |
Profitability
This table compares CorVel and Guardant Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 11.72% | 29.92% | 17.82% |
| Guardant Health | -38.33% | N/A | -25.40% |
Volatility and Risk
CorVel has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Guardant Health has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.
Earnings & Valuation
This table compares CorVel and Guardant Health”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $958.53 million | 3.92 | $110.34 million | $2.25 | 32.77 |
| Guardant Health | $982.02 million | 24.11 | -$416.28 million | ($3.49) | -50.56 |
CorVel has higher earnings, but lower revenue than Guardant Health. Guardant Health is trading at a lower price-to-earnings ratio than CorVel, indicating that it is currently the more affordable of the two stocks.
Summary
Guardant Health beats CorVel on 8 of the 15 factors compared between the two stocks.
About CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
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.
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