Contrasting Fulgent Genetics (NASDAQ:FLGT) and CareCloud (NASDAQ:CCLD)

CareCloud (NASDAQ:CCLD) and Fulgent Genetics (NASDAQ:FLGT) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Risk and Volatility

CareCloud has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares CareCloud and Fulgent Genetics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareCloud	7.87%	24.05%	16.38%
Fulgent Genetics	-23.04%	-3.24%	-2.97%

Institutional & Insider Ownership

10.2% of CareCloud shares are owned by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are owned by institutional investors. 14.8% of CareCloud shares are owned by company insiders. Comparatively, 36.2% of Fulgent Genetics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for CareCloud and Fulgent Genetics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
Fulgent Genetics	1	2	2	0	2.20

CareCloud presently has a consensus target price of $3.25, suggesting a potential upside of 46.40%. Fulgent Genetics has a consensus target price of $27.00, suggesting a potential upside of 29.50%. Given CareCloud’s stronger consensus rating and higher probable upside, research analysts clearly believe CareCloud is more favorable than Fulgent Genetics.

Earnings & Valuation

This table compares CareCloud and Fulgent Genetics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$120.50 million	0.78	$10.80 million	$0.11	20.18
Fulgent Genetics	$322.67 million	1.84	-$60.51 million	($2.39)	-8.72

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

Summary

CareCloud beats Fulgent Genetics on 9 of the 14 factors compared between the two stocks.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

About Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.