P3 Health Partners (NASDAQ:PIII) and American Well (NYSE:AMWL) Critical Analysis

American Well (NYSE:AMWLGet Free Report) and P3 Health Partners (NASDAQ:PIIIGet Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Valuation & Earnings

This table compares American Well and P3 Health Partners”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Well $254.36 million 0.27 -$208.14 million ($7.20) -0.59
P3 Health Partners $1.50 billion 0.03 -$135.85 million ($40.18) -0.14

P3 Health Partners has higher revenue and earnings than American Well. American Well is trading at a lower price-to-earnings ratio than P3 Health Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Well has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for American Well and P3 Health Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Well 1 6 1 0 2.00
P3 Health Partners 1 0 1 0 2.00

American Well currently has a consensus target price of $8.33, suggesting a potential upside of 97.29%. P3 Health Partners has a consensus target price of $12.50, suggesting a potential upside of 127.27%. Given P3 Health Partners’ higher probable upside, analysts plainly believe P3 Health Partners is more favorable than American Well.

Institutional & Insider Ownership

56.1% of American Well shares are held by institutional investors. Comparatively, 7.8% of P3 Health Partners shares are held by institutional investors. 11.8% of American Well shares are held by insiders. Comparatively, 17.8% of P3 Health Partners shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares American Well and P3 Health Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Well -42.80% -39.80% -29.38%
P3 Health Partners -9.07% -302.33% -16.72%

Summary

P3 Health Partners beats American Well on 7 of the 12 factors compared between the two stocks.

About American Well

(Get Free Report)

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.

About P3 Health Partners

(Get Free Report)

P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.

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