Head-To-Head Analysis: American Well (NYSE:AMWL) vs. Claritev (NYSE:CTEV)

Claritev (NYSE:CTEV) and American Well (NYSE:AMWL) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Risk & Volatility

Claritev has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Profitability

This table compares Claritev and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claritev	-28.46%	N/A	-5.76%
American Well	-35.75%	-30.12%	-22.30%

Earnings & Valuation

This table compares Claritev and American Well”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claritev	$965.41 million	0.37	-$284.28 million	($17.01)	-1.25
American Well	$249.32 million	0.86	-$95.70 million	($4.77)	-2.70

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Claritev and American Well, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claritev	1	2	6	0	2.56
American Well	1	5	1	0	2.00

Claritev currently has a consensus target price of $44.83, indicating a potential upside of 111.58%. American Well has a consensus target price of $9.50, indicating a potential downside of 26.28%. Given Claritev’s stronger consensus rating and higher probable upside, analysts clearly believe Claritev is more favorable than American Well.

Institutional & Insider Ownership

87.2% of Claritev shares are owned by institutional investors. Comparatively, 56.0% of American Well shares are owned by institutional investors. 7.4% of Claritev shares are owned by company insiders. Comparatively, 12.8% of American Well shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Claritev beats American Well on 9 of the 14 factors compared between the two stocks.

About Claritev

MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.

About American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.