Precipio (NASDAQ:PRPO – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Volatility & Risk
Precipio has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Precipio and Clover Health Investments, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Precipio | 1 | 0 | 0 | 0 | 1.00 |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
10.5% of Precipio shares are held by institutional investors. Comparatively, 19.8% of Clover Health Investments shares are held by institutional investors. 16.9% of Precipio 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, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Precipio and Clover Health Investments”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Precipio | $18.53 million | 2.40 | -$4.29 million | ($0.82) | -30.93 |
| Clover Health Investments | $1.37 billion | 0.76 | -$43.01 million | ($0.11) | -18.36 |
Precipio has higher earnings, but lower revenue than Clover Health Investments. Precipio is trading at a lower price-to-earnings ratio than Clover Health Investments, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Precipio and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Precipio | -5.50% | -10.07% | -6.71% |
| Clover Health Investments | -3.29% | -16.79% | -9.95% |
Summary
Clover Health Investments beats Precipio on 10 of the 14 factors compared between the two stocks.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.
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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