American Well (NYSE:AMWL – Get Free Report) and Health In Tech (NASDAQ:HIT – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.
Insider and Institutional Ownership
56.0% of American Well shares are held by institutional investors. 12.8% of American Well shares are held by company insiders. Comparatively, 77.7% of Health In Tech shares are held by company 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.
Profitability
This table compares American Well and Health In Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -35.75% | -30.12% | -22.30% |
| Health In Tech | N/A | N/A | N/A |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.89 | -$95.70 million | ($4.77) | -2.80 |
| Health In Tech | $32.83 million | 1.98 | -$4.59 million | ($0.07) | -14.14 |
Health In Tech has lower revenue, but higher earnings than American Well. Health In Tech is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for American Well and Health In Tech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
| Health In Tech | 1 | 0 | 1 | 1 | 2.67 |
American Well currently has a consensus price target of $9.50, indicating a potential downside of 28.79%. Health In Tech has a consensus price target of $3.50, indicating a potential upside of 253.54%. Given Health In Tech’s stronger consensus rating and higher probable upside, analysts clearly believe Health In Tech is more favorable than American Well.
Risk & Volatility
American Well has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Health In Tech has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.
Summary
Health In Tech beats American Well on 11 of the 14 factors compared between the two stocks.
About American Well
American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.
About Health In Tech
Health in Tech, Inc. engages in the provision of insurance technology platforms which offer a marketplace of processes in the healthcare industry. Its services include Stone Mountain Risk, eDIYBS, HI Card, HI Performance Network, and Ancillary Products. The company was founded by Tim Johnson in 2014 and is headquartered in Stuart, FL.
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