American Well (NYSE:AMWL – Get Free Report) and Butterfly Network (NYSE:BFLY – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
American Well has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.
Profitability
This table compares American Well and Butterfly Network’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -38.38% | -34.07% | -25.32% |
| Butterfly Network | -90.31% | -37.80% | -27.13% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $265.02 million | 0.33 | -$208.14 million | ($5.95) | -0.90 |
| Butterfly Network | $88.45 million | 8.70 | -$72.49 million | ($0.33) | -9.23 |
Butterfly Network has lower revenue, but higher earnings than American Well. Butterfly Network is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.0% of American Well shares are owned by institutional investors. Comparatively, 37.8% of Butterfly Network shares are owned by institutional investors. 11.8% of American Well shares are owned by insiders. Comparatively, 25.2% of Butterfly Network shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for American Well and Butterfly Network, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 6 | 1 | 0 | 2.00 |
| Butterfly Network | 1 | 1 | 3 | 0 | 2.40 |
American Well presently has a consensus price target of $7.42, indicating a potential upside of 37.98%. Butterfly Network has a consensus price target of $5.25, indicating a potential upside of 72.41%. Given Butterfly Network’s stronger consensus rating and higher probable upside, analysts clearly believe Butterfly Network is more favorable than American Well.
Summary
Butterfly Network beats American Well on 8 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 Butterfly Network
Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.
Receive News & Ratings for American Well Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Well and related companies with MarketBeat.com's FREE daily email newsletter.
