OptimizeRx (NASDAQ:OPRX) and Phreesia (NYSE:PHR) Critical Review

Phreesia (NYSE:PHR) and OptimizeRx (NASDAQ:OPRX) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Phreesia and OptimizeRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	-20.43%	-32.78%	-22.37%
OptimizeRx	-27.41%	-4.92%	-3.41%

Insider and Institutional Ownership

92.1% of Phreesia shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 5.8% of Phreesia shares are owned by insiders. Comparatively, 6.1% of OptimizeRx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Phreesia has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Phreesia and OptimizeRx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	1	11	0	2.92
OptimizeRx	0	2	7	0	2.78

Phreesia currently has a consensus target price of $29.33, indicating a potential upside of 16.59%. OptimizeRx has a consensus target price of $9.19, indicating a potential upside of 89.04%. Given OptimizeRx’s higher probable upside, analysts plainly believe OptimizeRx is more favorable than Phreesia.

Earnings & Valuation

This table compares Phreesia and OptimizeRx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$405.14 million	3.61	-$136.88 million	($1.47)	-17.12
OptimizeRx	$88.18 million	1.02	-$17.57 million	($1.33)	-3.65

OptimizeRx has lower revenue, but higher earnings than Phreesia. Phreesia is trading at a lower price-to-earnings ratio than OptimizeRx, indicating that it is currently the more affordable of the two stocks.

Summary

OptimizeRx beats Phreesia on 8 of the 14 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.