InnovAge (NASDAQ:INNV) & First Choice Healthcare Solutions (OTCMKTS:FCHS) Critical Analysis

First Choice Healthcare Solutions (OTCMKTS:FCHS) and InnovAge (NASDAQ:INNV) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Volatility and Risk

First Choice Healthcare Solutions has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares First Choice Healthcare Solutions and InnovAge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Choice Healthcare Solutions	N/A	N/A	-80.34%
InnovAge	-1.96%	-7.02%	-3.31%

Insider & Institutional Ownership

12.3% of InnovAge shares are owned by institutional investors. 30.8% of First Choice Healthcare Solutions shares are owned by company insiders. Comparatively, 1.0% of InnovAge shares are owned by company 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.

Valuation & Earnings

This table compares First Choice Healthcare Solutions and InnovAge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Choice Healthcare Solutions	$30,000.00	4.07	-$3.85 million	($0.10)	-0.04
InnovAge	$853.70 million	0.88	-$30.31 million	($0.13)	-42.69

First Choice Healthcare Solutions has higher earnings, but lower revenue than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than First Choice Healthcare Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for First Choice Healthcare Solutions and InnovAge, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Choice Healthcare Solutions	0	0	0	0	0.00
InnovAge	2	0	0	0	1.00

InnovAge has a consensus target price of $5.00, suggesting a potential downside of 9.91%. Given InnovAge’s stronger consensus rating and higher possible upside, analysts clearly believe InnovAge is more favorable than First Choice Healthcare Solutions.

Summary

First Choice Healthcare Solutions beats InnovAge on 7 of the 13 factors compared between the two stocks.

About First Choice Healthcare Solutions

First Choice Healthcare Solutions, Inc. provides healthcare services in the United States. It develops primary care and wellness clinics focused on providing life improvement services, such as anti-aging, weight management, hormone replacement, and pharmacy services. The company is headquartered in Melbourne, Florida.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.