Guardant Health (NASDAQ:GH – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Profitability
This table compares Guardant Health and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Guardant Health | -38.33% | N/A | -25.40% |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
Earnings & Valuation
This table compares Guardant Health and Clover Health Investments”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Guardant Health | $982.02 million | 24.43 | -$416.28 million | ($3.49) | -51.23 |
| Clover Health Investments | $1.92 billion | 1.23 | -$85.55 million | ($0.05) | -89.20 |
Clover Health Investments has higher revenue and earnings than Guardant Health. Clover Health Investments is trading at a lower price-to-earnings ratio than Guardant Health, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Guardant Health has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Guardant Health and Clover Health Investments, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Guardant Health | 1 | 0 | 24 | 1 | 2.96 |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
Guardant Health presently has a consensus price target of $191.00, suggesting a potential upside of 6.82%. Clover Health Investments has a consensus price target of $5.00, suggesting a potential upside of 12.11%. Given Clover Health Investments’ higher probable upside, analysts clearly believe Clover Health Investments is more favorable than Guardant Health.
Institutional & Insider Ownership
92.6% of Guardant Health shares are held by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are held by institutional investors. 5.6% of Guardant Health shares are held by insiders. Comparatively, 23.5% of Clover Health Investments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Clover Health Investments beats Guardant Health on 8 of the 15 factors compared between the two stocks.
About Guardant Health
Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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