Reviewing Clover Health Investments (NASDAQ:CLOV) & Fulgent Genetics (NASDAQ:FLGT)

Clover Health Investments (NASDAQ:CLOV) and Fulgent Genetics (NASDAQ:FLGT) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider & Institutional Ownership

19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by insiders. Comparatively, 36.2% of Fulgent Genetics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.92 billion	1.29	-$85.55 million	($0.12)	-39.42
Fulgent Genetics	$322.67 million	1.64	-$60.51 million	($2.39)	-7.82

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Clover Health Investments and Fulgent Genetics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
Fulgent Genetics	1	2	2	0	2.20

Clover Health Investments presently has a consensus target price of $3.82, indicating a potential downside of 19.31%. Fulgent Genetics has a consensus target price of $27.00, indicating a potential upside of 44.54%. Given Fulgent Genetics’ stronger consensus rating and higher possible upside, analysts plainly believe Fulgent Genetics is more favorable than Clover Health Investments.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-2.58%	-16.52%	-9.28%
Fulgent Genetics	-23.04%	-3.24%	-2.97%

Volatility and Risk

Clover Health Investments has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Fulgent Genetics beats Clover Health Investments 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 Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.