Head-To-Head Survey: CareCloud (NASDAQ:CCLD) versus Precipio (NASDAQ:PRPO)

CareCloud (NASDAQ:CCLD) and Precipio (NASDAQ:PRPO) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

CareCloud has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

10.2% of CareCloud shares are held by institutional investors. Comparatively, 10.5% of Precipio shares are held by institutional investors. 14.8% of CareCloud shares are held by insiders. Comparatively, 16.6% of Precipio shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares CareCloud and Precipio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$120.50 million	0.74	$10.80 million	$0.11	19.18
Precipio	$24.05 million	1.94	-$360,000.00	($0.47)	-55.40

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

Profitability

This table compares CareCloud and Precipio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareCloud	7.87%	24.05%	16.38%
Precipio	-3.57%	-6.73%	-4.49%

Analyst Recommendations

This is a breakdown of recent recommendations for CareCloud and Precipio, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Precipio	1	0	0	0	1.00

CareCloud currently has a consensus target price of $3.25, suggesting a potential upside of 54.03%. Given CareCloud’s stronger consensus rating and higher possible upside, equities analysts clearly believe CareCloud is more favorable than Precipio.

Summary

CareCloud beats Precipio on 11 of the 14 factors compared between the two stocks.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

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.