Comparing InnovAge (NASDAQ:INNV) & CorVel (NASDAQ:CRVL)

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

Risk and Volatility

InnovAge has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, CorVel has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 51.4% of CorVel shares are owned by institutional investors. 1.0% of InnovAge shares are owned by company insiders. Comparatively, 39.7% of CorVel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares InnovAge and CorVel”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)	-457.55
CorVel	$958.53 million	4.32	$110.34 million	$2.25	36.11

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

Analyst Ratings

This is a summary of current ratings for InnovAge and CorVel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	1	1	0	1.75
CorVel	0	1	0	0	2.00

InnovAge presently has a consensus price target of $10.50, indicating a potential upside of 14.74%. Given InnovAge’s higher probable upside, equities research analysts plainly believe InnovAge is more favorable than CorVel.

Profitability

This table compares InnovAge and CorVel’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%
CorVel	11.72%	29.92%	17.82%

Summary

CorVel beats InnovAge on 11 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 CorVel

CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.