Zhongchao (NASDAQ:ZCMD) vs. Phreesia (NYSE:PHR) Critical Analysis

Phreesia (NYSE:PHR) and Zhongchao (NASDAQ:ZCMD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Phreesia and Zhongchao, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	9	9	0	2.42
Zhongchao	1	0	0	0	1.00

Phreesia presently has a consensus price target of $16.65, indicating a potential upside of 62.93%. Given Phreesia’s stronger consensus rating and higher possible upside, analysts clearly believe Phreesia is more favorable than Zhongchao.

Insider & Institutional Ownership

92.1% of Phreesia shares are held by institutional investors. Comparatively, 1.7% of Zhongchao shares are held by institutional investors. 5.2% of Phreesia shares are held by insiders. Comparatively, 28.6% of Zhongchao shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Phreesia has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Zhongchao has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Earnings & Valuation

This table compares Phreesia and Zhongchao”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$495.59 million	1.27	$2.31 million	$0.15	68.11
Zhongchao	$11.38 million	0.14	-$6.31 million	N/A	N/A

Phreesia has higher revenue and earnings than Zhongchao.

Profitability

This table compares Phreesia and Zhongchao’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	1.85%	5.13%	3.12%
Zhongchao	N/A	N/A	N/A

Summary

Phreesia beats Zhongchao on 11 of the 12 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.