American Well (NYSE:AMWL – Get Free Report) and MediaAlpha (NYSE:MAX – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Earnings & Valuation
This table compares American Well and MediaAlpha”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
American Well | $254.04 million | 0.70 | -$675.16 million | ($14.63) | -0.80 |
MediaAlpha | $681.23 million | 1.13 | -$40.42 million | $0.17 | 67.82 |
MediaAlpha has higher revenue and earnings than American Well. American Well is trading at a lower price-to-earnings ratio than MediaAlpha, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for American Well and MediaAlpha, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
American Well | 0 | 3 | 1 | 0 | 2.25 |
MediaAlpha | 0 | 1 | 6 | 0 | 2.86 |
American Well currently has a consensus target price of $12.50, indicating a potential upside of 7.34%. MediaAlpha has a consensus target price of $21.57, indicating a potential upside of 87.11%. Given MediaAlpha’s stronger consensus rating and higher probable upside, analysts plainly believe MediaAlpha is more favorable than American Well.
Profitability
This table compares American Well and MediaAlpha’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
American Well | -84.27% | -52.49% | -40.22% |
MediaAlpha | 1.41% | -11.98% | 5.19% |
Insider and Institutional Ownership
56.0% of American Well shares are held by institutional investors. Comparatively, 64.4% of MediaAlpha shares are held by institutional investors. 12.8% of American Well shares are held by insiders. Comparatively, 11.5% of MediaAlpha shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
MediaAlpha beats American Well on 13 of the 14 factors compared between the two stocks.
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.
About MediaAlpha
MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. It optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. The company was founded in 2014 and is headquartered in Los Angeles, California.
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