CareCloud (NASDAQ:CCLD – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares CareCloud and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareCloud | 9.80% | 24.31% | 17.03% |
| Clover Health Investments | -3.29% | -16.79% | -9.95% |
Earnings & Valuation
This table compares CareCloud and Clover Health Investments”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareCloud | $110.84 million | 1.17 | $7.85 million | $0.04 | 76.25 |
| Clover Health Investments | $1.37 billion | 0.98 | -$43.01 million | ($0.11) | -23.64 |
CareCloud has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
CareCloud has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
Insider and Institutional Ownership
10.2% of CareCloud shares are held by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are held by institutional investors. 14.7% of CareCloud shares are held by insiders. Comparatively, 24.1% of Clover Health Investments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for CareCloud and Clover Health Investments, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareCloud | 0 | 3 | 1 | 0 | 2.25 |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
CareCloud presently has a consensus target price of $2.38, suggesting a potential downside of 22.13%. Clover Health Investments has a consensus target price of $3.23, suggesting a potential upside of 24.36%. Given Clover Health Investments’ higher probable upside, analysts plainly believe Clover Health Investments is more favorable than CareCloud.
Summary
CareCloud beats Clover Health Investments on 8 of the 13 factors compared between the two stocks.
About CareCloud
CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.
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.
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