NeueHealth (NYSE:NEUE) & COMPASS Pathways (NASDAQ:CMPS) Head-To-Head Survey

NeueHealth (NYSE:NEUE) and COMPASS Pathways (NASDAQ:CMPS) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Earnings and Valuation

This table compares NeueHealth and COMPASS Pathways”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeueHealth	$936.66 million	0.06	-$134.68 million	($15.97)	-0.42
COMPASS Pathways	N/A	N/A	-$155.12 million	($1.84)	-2.83

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

Insider and Institutional Ownership

63.9% of NeueHealth shares are owned by institutional investors. Comparatively, 46.2% of COMPASS Pathways shares are owned by institutional investors. 63.3% of NeueHealth shares are owned by insiders. Comparatively, 3.9% of COMPASS Pathways shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NeueHealth and COMPASS Pathways, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeueHealth	0	1	0	0	2.00
COMPASS Pathways	0	1	6	0	2.86

NeueHealth currently has a consensus target price of $7.00, indicating a potential upside of 4.00%. COMPASS Pathways has a consensus target price of $16.29, indicating a potential upside of 213.19%. Given COMPASS Pathways’ stronger consensus rating and higher possible upside, analysts plainly believe COMPASS Pathways is more favorable than NeueHealth.

Risk and Volatility

NeueHealth has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, COMPASS Pathways has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.

Profitability

This table compares NeueHealth and COMPASS Pathways’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeueHealth	-9.08%	N/A	-13.01%
COMPASS Pathways	N/A	-87.89%	-57.77%

Summary

NeueHealth beats COMPASS Pathways on 7 of the 13 factors compared between the two stocks.

About NeueHealth

NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.

About COMPASS Pathways

COMPASS Pathways plc operates as a mental health care company in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that is in Phase III clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder and anorexia nervosa. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020. COMPASS Pathways plc was incorporated in 2020 and is headquartered in London, the United Kingdom.