Contrasting American Well (NYSE:AMWL) and Weave Communications (NYSE:WEAV)

Weave Communications (NYSE:WEAV) and American Well (NYSE:AMWL) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Risk and Volatility

Weave Communications has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Earnings and Valuation

This table compares Weave Communications and American Well”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weave Communications	$257.79 million	2.29	-$28.05 million	($0.25)	-29.50
American Well	$218.53 million	0.93	-$95.70 million	($4.77)	-2.58

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

Analyst Recommendations

This is a breakdown of recent ratings for Weave Communications and American Well, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weave Communications	1	5	2	0	2.12
American Well	1	5	1	0	2.00

Weave Communications currently has a consensus price target of $7.84, indicating a potential upside of 6.31%. American Well has a consensus price target of $9.50, indicating a potential downside of 22.80%. Given Weave Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Weave Communications is more favorable than American Well.

Insider and Institutional Ownership

86.8% of Weave Communications shares are held by institutional investors. Comparatively, 56.0% of American Well shares are held by institutional investors. 16.4% of Weave Communications shares are held by insiders. Comparatively, 12.8% of American Well shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Weave Communications and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weave Communications	-7.97%	-21.14%	-8.41%
American Well	-35.75%	-30.12%	-22.30%

Summary

Weave Communications beats American Well on 13 of the 14 factors compared between the two stocks.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

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.