American Well (NYSE:AMWL – Get Free Report) and Weave Communications (NYSE:WEAV – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Earnings and Valuation
This table compares American Well and Weave Communications”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $218.53 million | 0.93 | -$95.70 million | ($4.77) | -2.58 |
| Weave Communications | $257.79 million | 2.29 | -$28.05 million | ($0.25) | -29.50 |
Analyst Ratings
This is a breakdown of recent recommendations for American Well and Weave Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
| Weave Communications | 1 | 5 | 2 | 0 | 2.12 |
American Well currently has a consensus target price of $9.50, indicating a potential downside of 22.80%. Weave Communications has a consensus target price of $7.84, indicating a potential upside of 6.31%. Given Weave Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Weave Communications is more favorable than American Well.
Profitability
This table compares American Well and Weave Communications’ 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% |
| Weave Communications | -7.97% | -21.14% | -8.41% |
Insider and Institutional Ownership
56.0% of American Well shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 12.8% of American Well shares are owned by company insiders. Comparatively, 16.4% of Weave Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
American Well has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
Summary
Weave Communications beats American Well on 13 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 Weave Communications
Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.
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