Clover Health Investments (NASDAQ:CLOV – Get Free Report) and Cardinal Health (NYSE:CAH – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Valuation and Earnings
This table compares Clover Health Investments and Cardinal Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $1.92 billion | 1.17 | -$85.55 million | ($0.05) | -85.00 |
| Cardinal Health | $254.25 billion | 0.22 | $1.71 billion | $7.23 | 32.52 |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Clover Health Investments and Cardinal Health, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
| Cardinal Health | 0 | 3 | 16 | 0 | 2.84 |
Clover Health Investments currently has a consensus price target of $4.33, suggesting a potential upside of 1.96%. Cardinal Health has a consensus price target of $266.56, suggesting a potential upside of 13.36%. Given Cardinal Health’s stronger consensus rating and higher possible upside, analysts plainly believe Cardinal Health is more favorable than Clover Health Investments.
Profitability
This table compares Clover Health Investments and Cardinal Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| Cardinal Health | 0.67% | -98.53% | 4.69% |
Institutional & Insider Ownership
19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 87.2% of Cardinal Health shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by insiders. Comparatively, 0.1% of Cardinal Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Clover Health Investments has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, Cardinal Health has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.
Summary
Cardinal Health beats Clover Health Investments on 10 of the 14 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 Cardinal Health
Cardinal Health, Inc. operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; repackages generic pharmaceuticals and over-the-counter healthcare products; and provides pharmacy management services to hospitals. The Medical segment manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compressions; incontinences; nutritional delivery products; wound care products; single-use surgical drapes, gowns, and apparels; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. The segment also distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile, and non-sterile procedure kits. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.
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