American Well (NYSE:AMWL – Get Free Report) and Health Catalyst (NASDAQ:HCAT – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Valuation & Earnings
This table compares American Well and Health Catalyst”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.90 | -$95.70 million | ($4.77) | -2.84 |
| Health Catalyst | $311.14 million | 0.39 | -$177.97 million | ($3.68) | -0.44 |
American Well has higher earnings, but lower revenue than Health Catalyst. American Well is trading at a lower price-to-earnings ratio than Health Catalyst, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
American Well has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.
Institutional and Insider Ownership
56.0% of American Well shares are owned by institutional investors. Comparatively, 85.0% of Health Catalyst shares are owned by institutional investors. 12.8% of American Well shares are owned by insiders. Comparatively, 19.4% of Health Catalyst shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares American Well and Health Catalyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -35.75% | -30.12% | -22.30% |
| Health Catalyst | -90.61% | -1.83% | -0.80% |
Analyst Recommendations
This is a summary of recent recommendations for American Well and Health Catalyst, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
| Health Catalyst | 1 | 6 | 2 | 0 | 2.11 |
American Well currently has a consensus price target of $9.50, indicating a potential downside of 29.76%. Health Catalyst has a consensus price target of $2.15, indicating a potential upside of 31.90%. Given Health Catalyst’s stronger consensus rating and higher possible upside, analysts clearly believe Health Catalyst is more favorable than American Well.
Summary
Health Catalyst beats American Well on 9 of the 13 factors compared between the two stocks.
About American Well
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 Health Catalyst
Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.
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