Comparing Strata Skin Sciences (NASDAQ:SSKN) & Clover Health Investments (NASDAQ:CLOV)

Clover Health Investments (NASDAQ:CLOV) and Strata Skin Sciences (NASDAQ:SSKN) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Clover Health Investments and Strata Skin Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-3.29%	-16.79%	-9.95%
Strata Skin Sciences	-35.64%	-476.73%	-33.49%

Volatility & Risk

Clover Health Investments has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Strata Skin Sciences has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Insider and Institutional Ownership

19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 32.4% of Strata Skin Sciences shares are held by institutional investors. 24.1% of Clover Health Investments shares are held by insiders. Comparatively, 40.9% of Strata Skin Sciences shares are held 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.

Valuation & Earnings

This table compares Clover Health Investments and Strata Skin Sciences”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.77 billion	0.59	-$43.01 million	($0.11)	-18.36
Strata Skin Sciences	$33.56 million	0.06	-$10.09 million	($2.67)	-0.13

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

Analyst Ratings

This is a summary of recent ratings and target prices for Clover Health Investments and Strata Skin Sciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
Strata Skin Sciences	1	0	1	0	2.00

Clover Health Investments presently has a consensus price target of $3.23, indicating a potential upside of 60.07%. Strata Skin Sciences has a consensus price target of $6.00, indicating a potential upside of 1,639.13%. Given Strata Skin Sciences’ higher possible upside, analysts clearly believe Strata Skin Sciences is more favorable than Clover Health Investments.

Summary

Clover Health Investments beats Strata Skin Sciences on 7 of the 12 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 Strata Skin Sciences

STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.