Financial Review: CareCloud (NASDAQ:CCLD) vs. OptimizeRx (NASDAQ:OPRX)

OptimizeRx (NASDAQ:OPRX) and CareCloud (NASDAQ:CCLD) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares OptimizeRx and CareCloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.37	$5.13 million	$0.23	34.50
CareCloud	$120.50 million	0.94	$10.80 million	$0.07	38.07

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

Institutional & Insider Ownership

76.5% of OptimizeRx shares are held by institutional investors. Comparatively, 10.2% of CareCloud shares are held by institutional investors. 7.5% of OptimizeRx shares are held by company insiders. Comparatively, 14.8% of CareCloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for OptimizeRx and CareCloud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
CareCloud	0	2	1	0	2.33

OptimizeRx currently has a consensus price target of $11.43, suggesting a potential upside of 44.03%. CareCloud has a consensus price target of $3.25, suggesting a potential upside of 21.95%. Given OptimizeRx’s stronger consensus rating and higher probable upside, research analysts clearly believe OptimizeRx is more favorable than CareCloud.

Risk & Volatility

OptimizeRx has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Profitability

This table compares OptimizeRx and CareCloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.66%	9.44%	7.11%
CareCloud	6.21%	27.07%	14.56%

Summary

CareCloud beats OptimizeRx on 8 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

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.