Healthcare Triangle (NASDAQ:HCTI – 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 compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Volatility and Risk
Healthcare Triangle has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.
Profitability
This table compares Healthcare Triangle and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Triangle | -47.74% | N/A | -68.50% |
| Clover Health Investments | -2.68% | -12.20% | -6.95% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Triangle | $11.70 million | 1.39 | -$5.97 million | ($155.58) | -0.02 |
| Clover Health Investments | $1.37 billion | 0.96 | -$43.01 million | ($0.08) | -32.00 |
Healthcare Triangle has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Healthcare Triangle, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.3% of Healthcare Triangle shares are held by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are held by institutional investors. 1.6% of Healthcare Triangle shares are held by company insiders. Comparatively, 24.1% of Clover Health Investments shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Healthcare Triangle and Clover Health Investments, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Triangle | 1 | 0 | 0 | 0 | 1.00 |
| Clover Health Investments | 1 | 1 | 2 | 0 | 2.25 |
Clover Health Investments has a consensus target price of $4.37, indicating a potential upside of 70.57%. Given Clover Health Investments’ stronger consensus rating and higher probable upside, analysts clearly believe Clover Health Investments is more favorable than Healthcare Triangle.
Summary
Clover Health Investments beats Healthcare Triangle on 10 of the 14 factors compared between the two stocks.
About Healthcare Triangle
Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.
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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