Analyzing MedAvail (NASDAQ:MDVL) and Covetrus (NASDAQ:CVET)

MedAvail (NASDAQ:MDVL) and Covetrus (NASDAQ:CVET) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares MedAvail and Covetrus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MedAvail -259.56% -77.27% -62.84%
Covetrus -1.90% 1.05% 0.45%

Risk and Volatility

MedAvail has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Covetrus has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for MedAvail and Covetrus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MedAvail 0 1 1 0 2.50
Covetrus 0 1 3 0 2.75

MedAvail presently has a consensus price target of $8.75, indicating a potential upside of 174.29%. Covetrus has a consensus price target of $33.50, indicating a potential upside of 71.01%. Given MedAvail’s higher possible upside, research analysts clearly believe MedAvail is more favorable than Covetrus.

Earnings and Valuation

This table compares MedAvail and Covetrus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MedAvail $13.97 million 7.48 -$26.81 million ($3.80) -0.84
Covetrus $4.34 billion 0.62 -$19.00 million $0.59 33.20

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

Institutional and Insider Ownership

86.8% of MedAvail shares are owned by institutional investors. Comparatively, 94.3% of Covetrus shares are owned by institutional investors. 3.7% of MedAvail shares are owned by insiders. Comparatively, 0.4% of Covetrus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Covetrus beats MedAvail on 10 of the 14 factors compared between the two stocks.

About MedAvail

MedAvail Holdings, Inc. is a technology-enabled pharmacy company. It provides turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. The firm helps patients to optimize drug adherence, resulting in better health outcomes. The company was founded on April 11, 2007 and is headquartered in Mississauga, Canada.

About Covetrus

Covetrus, Inc. engages in developing technologies and services for animal health industry. It also provides products, software, and services to help drive improved patient health, strong client relationships and successful financial outcomes for veterinary professionals. The firm geographically operates through the segments: North America, Europe and Asia Pacific (APAC) & Emerging Markets. The company was founded by Benjamin J. Shaw in 2014 and is headquartered in Portland, ME.

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