Clover Health Investments (NASDAQ:CLOV – Get Free Report) and LifeMD (NASDAQ:LFMD – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Clover Health Investments and LifeMD’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| LifeMD | 0.10% | -168.23% | -31.27% |
Volatility & Risk
Clover Health Investments has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500. Comparatively, LifeMD has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $2.48 billion | 0.89 | -$85.55 million | ($0.05) | -83.00 |
| LifeMD | $191.59 million | 0.83 | $14.35 million | ($0.05) | -66.20 |
LifeMD has lower revenue, but higher earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than LifeMD, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
19.8% of Clover Health Investments shares are owned by institutional investors. Comparatively, 35.5% of LifeMD shares are owned by institutional investors. 23.5% of Clover Health Investments shares are owned by company insiders. Comparatively, 17.2% of LifeMD shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Clover Health Investments and LifeMD, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
| LifeMD | 1 | 1 | 8 | 0 | 2.70 |
Clover Health Investments presently has a consensus target price of $4.33, suggesting a potential upside of 4.42%. LifeMD has a consensus target price of $7.57, suggesting a potential upside of 128.74%. Given LifeMD’s stronger consensus rating and higher probable upside, analysts clearly believe LifeMD is more favorable than Clover Health Investments.
Summary
LifeMD beats Clover Health Investments on 7 of the 13 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 LifeMD
LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company offers telehealth platform comprising RexMD, a men's telehealth brand that provides access to virtual medical treatment for a variety of men's health needs from licensed physician; ShapiroMD that provides virtual medical treatment, prescription medications, patented doctor formulated OTC products, topical compounded medications, and medical devices treating male and female hair loss; NavaMD, a female-oriented tele-dermatology that offers virtual medical treatment from dermatologists and other providers; and prescription oral and compounded topical medications to treat aging and acne; and Cleared which provides personalized treatments for allergy, asthma and immunology, including in-home tests for both environmental and food allergies, prescriptions for allergies and asthma and immunotherapies for treating chronic allergies. It also provides LifeMD PC, a direct-to-consumer virtual primary care which includes 24/7 access to a provider for their primary care, urgent care, and chronic care needs; and offers virtual consultations and treatment, prescription medications, diagnostics and imaging, wellness coaching, and more. In addition, the company offers PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents; ResumeBuild which provides digital resume and cover letter services; SignSimpli, a digital signature platform; and LegalSimpli, a provider of legal forms for consumers and small businesses. It sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was incorporated in 1994 and is headquartered in New York, New York.
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