Contrasting Weave Communications (NYSE:WEAV) and Certara (NASDAQ:CERT)

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

Analyst Ratings

This is a summary of current ratings and target prices for Certara and Weave Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Certara	1	6	4	1	2.42
Weave Communications	1	5	2	0	2.12

Certara presently has a consensus price target of $9.18, indicating a potential downside of 9.81%. Weave Communications has a consensus price target of $7.84, indicating a potential upside of 6.02%. Given Weave Communications’ higher probable upside, analysts plainly believe Weave Communications is more favorable than Certara.

Earnings and Valuation

This table compares Certara and Weave Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Certara	$418.84 million	3.71	-$1.60 million	($0.45)	-22.62
Weave Communications	$239.02 million	2.48	-$28.05 million	($0.25)	-29.58

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

Risk and Volatility

Certara has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Insider & Institutional Ownership

74.0% of Certara shares are held by institutional investors. Comparatively, 86.8% of Weave Communications shares are held by institutional investors. 1.1% of Certara shares are held by insiders. Comparatively, 16.4% of Weave Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Certara and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Certara	-16.75%	3.86%	2.65%
Weave Communications	-7.97%	-21.14%	-8.41%

Summary

Certara beats Weave Communications on 9 of the 15 factors compared between the two stocks.

About Certara

Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.

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.