Head-To-Head Survey: Phreesia (NYSE:PHR) and Marchex (NASDAQ:MCHX)

Marchex (NASDAQ:MCHX) and Phreesia (NYSE:PHR) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Marchex has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

73.5% of Marchex shares are held by institutional investors. Comparatively, 92.1% of Phreesia shares are held by institutional investors. 20.3% of Marchex shares are held by insiders. Comparatively, 5.8% of Phreesia shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Marchex and Phreesia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marchex	$48.82 million	1.65	-$9.91 million	($0.15)	-12.27
Phreesia	$389.96 million	3.29	-$136.88 million	($2.17)	-10.30

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

Profitability

This table compares Marchex and Phreesia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marchex	-10.03%	-11.33%	-8.61%
Phreesia	-25.73%	-39.34%	-27.13%

Analyst Recommendations

This is a summary of current recommendations for Marchex and Phreesia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marchex	0	0	0	0	N/A
Phreesia	0	1	11	0	2.92

Phreesia has a consensus price target of $29.42, indicating a potential upside of 31.62%. Given Phreesia’s higher possible upside, analysts clearly believe Phreesia is more favorable than Marchex.

Summary

Marchex beats Phreesia on 7 of the 13 factors compared between the two stocks.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.