Head-To-Head Contrast: Option Care Health (NASDAQ:OPCH) and Clover Health Investments (NASDAQ:CLOV)

Option Care Health (NASDAQ:OPCH) and Clover Health Investments (NASDAQ:CLOV) are both mid-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Option Care Health and Clover Health Investments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Option Care Health	0	14	2	0	2.12
Clover Health Investments	1	3	3	0	2.29

Option Care Health presently has a consensus price target of $29.48, indicating a potential downside of 6.98%. Clover Health Investments has a consensus price target of $5.00, indicating a potential upside of 16.01%. Given Clover Health Investments’ stronger consensus rating and higher probable upside, analysts clearly believe Clover Health Investments is more favorable than Option Care Health.

Profitability

This table compares Option Care Health and Clover Health Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Option Care Health	3.68%	18.74%	7.25%
Clover Health Investments	-0.74%	-4.20%	-2.28%

Institutional & Insider Ownership

98.0% of Option Care Health shares are owned by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are owned by institutional investors. 1.7% of Option Care Health shares are owned by company insiders. Comparatively, 23.5% of Clover Health Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Option Care Health and Clover Health Investments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Option Care Health	$5.65 billion	0.84	$207.59 million	$1.33	23.83
Clover Health Investments	$1.92 billion	1.19	-$85.55 million	($0.05)	-86.20

Option Care Health has higher revenue and earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Option Care Health, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Option Care Health has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Summary

Option Care Health beats Clover Health Investments on 8 of the 14 factors compared between the two stocks.

About Option Care Health

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.

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.