Comparing Precipio (NASDAQ:PRPO) & Clover Health Investments (NASDAQ:CLOV)

Clover Health Investments (NASDAQ:CLOV) and Precipio (NASDAQ:PRPO) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-3.29%	-16.79%	-9.95%
Precipio	-5.50%	-10.07%	-6.71%

Volatility & Risk

Clover Health Investments has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 10.5% of Precipio shares are held by institutional investors. 24.1% of Clover Health Investments shares are held by insiders. Comparatively, 16.9% of Precipio shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Clover Health Investments and Precipio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
Precipio	1	0	0	0	1.00

Clover Health Investments currently has a consensus target price of $3.23, indicating a potential upside of 60.07%. Given Clover Health Investments’ stronger consensus rating and higher probable upside, research analysts plainly believe Clover Health Investments is more favorable than Precipio.

Valuation and Earnings

This table compares Clover Health Investments and Precipio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.37 billion	0.76	-$43.01 million	($0.11)	-18.36
Precipio	$18.53 million	2.40	-$4.29 million	($0.82)	-30.93

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

Summary

Clover Health Investments beats Precipio on 10 of the 14 factors compared between the two stocks.

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.

About Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.