Financial Survey: Phreesia (NYSE:PHR) & Claritev (NYSE:CTEV)

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

Risk & Volatility

Claritev has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Claritev	-28.46%	N/A	-5.76%
Phreesia	2.06%	5.22%	3.02%

Analyst Recommendations

This is a breakdown of current recommendations for Claritev and Phreesia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claritev	1	2	6	0	2.56
Phreesia	1	10	8	0	2.37

Claritev presently has a consensus price target of $44.83, indicating a potential upside of 88.77%. Phreesia has a consensus price target of $14.00, indicating a potential upside of 38.82%. Given Claritev’s stronger consensus rating and higher probable upside, analysts plainly believe Claritev is more favorable than Phreesia.

Insider & Institutional Ownership

87.2% of Claritev shares are owned by institutional investors. Comparatively, 92.1% of Phreesia shares are owned by institutional investors. 7.4% of Claritev shares are owned by insiders. Comparatively, 5.2% of Phreesia shares are owned 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 Claritev and Phreesia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claritev	$965.41 million	0.42	-$284.28 million	($17.01)	-1.40
Phreesia	$480.59 million	1.30	$2.31 million	$0.17	59.32

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

Summary

Phreesia beats Claritev on 9 of the 14 factors compared between the two stocks.

About Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

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.