InnovAge (NASDAQ:INNV) & Precipio (NASDAQ:PRPO) Financial Analysis

InnovAge (NASDAQ:INNV) and Precipio (NASDAQ:PRPO) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for InnovAge and Precipio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	1	1	0	1.75
Precipio	1	0	0	0	1.00

InnovAge currently has a consensus price target of $10.50, suggesting a potential upside of 14.59%. Given InnovAge’s stronger consensus rating and higher possible upside, analysts plainly believe InnovAge is more favorable than Precipio.

Institutional & Insider Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 10.4% of Precipio shares are owned by institutional investors. 1.0% of InnovAge shares are owned by company insiders. Comparatively, 16.6% of Precipio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

InnovAge has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Precipio has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InnovAge	-0.26%	-1.03%	-0.47%
Precipio	-4.47%	-8.49%	-5.75%

Earnings and Valuation

This table compares InnovAge and Precipio”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$989.71 million	1.26	-$2.54 million	($0.02)	-458.15
Precipio	$24.05 million	1.68	-$360,000.00	($0.64)	-35.17

Precipio has lower revenue, but higher earnings 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.

Summary

InnovAge beats Precipio on 9 of the 14 factors compared between the two stocks.

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.

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.