Precipio (NASDAQ:PRPO – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Earnings and Valuation
This table compares Precipio and InnovAge”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precipio | $24.05 million | 1.63 | -$360,000.00 | ($0.64) | -34.20 |
| InnovAge | $989.71 million | 1.22 | -$2.54 million | ($0.02) | -444.00 |
Precipio has higher earnings, but lower revenue than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than Precipio, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Precipio and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precipio | -4.47% | -8.49% | -5.75% |
| InnovAge | -0.26% | -1.03% | -0.47% |
Analyst Recommendations
This is a breakdown of current recommendations for Precipio and InnovAge, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precipio | 1 | 0 | 0 | 0 | 1.00 |
| InnovAge | 2 | 1 | 1 | 0 | 1.75 |
InnovAge has a consensus price target of $10.50, suggesting a potential upside of 18.24%. Given InnovAge’s stronger consensus rating and higher probable upside, analysts clearly believe InnovAge is more favorable than Precipio.
Volatility & Risk
Precipio has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.
Institutional & Insider Ownership
10.4% of Precipio shares are held by institutional investors. Comparatively, 12.3% of InnovAge shares are held by institutional investors. 16.6% of Precipio shares are held by company insiders. Comparatively, 1.0% of InnovAge shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
InnovAge beats Precipio on 9 of the 13 factors compared between the two stocks.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
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