Clover Health Investments (NASDAQ:CLOV – Get Free Report) and Guardant Health (NASDAQ:GH – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Risk & Volatility
Clover Health Investments has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Guardant Health has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Valuation & Earnings
This table compares Clover Health Investments and Guardant Health”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $1.92 billion | 1.28 | -$85.55 million | ($0.05) | -92.92 |
| Guardant Health | $982.02 million | 23.13 | -$416.28 million | ($3.49) | -48.49 |
Clover Health Investments has higher revenue and earnings than Guardant Health. Clover Health Investments is trading at a lower price-to-earnings ratio than Guardant Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Clover Health Investments and Guardant Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
| Guardant Health | 1 | 0 | 24 | 1 | 2.96 |
Clover Health Investments currently has a consensus target price of $5.00, indicating a potential upside of 7.62%. Guardant Health has a consensus target price of $191.00, indicating a potential upside of 12.86%. Given Guardant Health’s stronger consensus rating and higher probable upside, analysts clearly believe Guardant Health is more favorable than Clover Health Investments.
Profitability
This table compares Clover Health Investments and Guardant Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| Guardant Health | -38.33% | N/A | -25.40% |
Institutional and Insider Ownership
19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 92.6% of Guardant Health shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by company insiders. Comparatively, 5.6% of Guardant Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Guardant Health beats Clover Health Investments on 8 of the 15 factors compared between the two stocks.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
About Guardant Health
Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant360 LDT; Guardant360 CDx Test; Guardant360 Response Test; Guardant360 TissueNext Test; GuardantINFINITY Test; GuardantConnect, an integrated software-based solution designed for clinical and biopharmaceutical customers to connect patients tested with assays with actionable alterations with potentially relevant clinical studies; GuardantOMNI Test for advanced stage cancer; and GuardantINFORM, an in-silico research platform for tumor evolution and treatment resistance across various biomarker-driven cancers. It offers Shield Test; Guardant Reveal Test for adjuvant treatment selection in early-stage cancer patients; Smart Liquid Biopsy Platform; and Guardant Galaxy, an AI-backed digital pathology platform that helps improve cancer biomarker detection. In addition, the company offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, technologies licensing, and kits fulfillment. The company has a collaboration agreement with Illumina, Inc. for the sharing of specimen samples to advance cancer research. The company was incorporated in 2011 and is headquartered in Palo Alto, California.
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