Head-To-Head Comparison: Clover Health Investments (NASDAQ:CLOV) and CareCloud (NASDAQ:CCLD)

Clover Health Investments (NASDAQ:CLOV) and CareCloud (NASDAQ:CCLD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Clover Health Investments and CareCloud”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.37 billion	0.96	-$43.01 million	($0.11)	-23.09
CareCloud	$114.32 million	1.08	$7.85 million	$0.04	72.50

CareCloud has lower revenue, but higher earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clover Health Investments and CareCloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-3.29%	-16.79%	-9.95%
CareCloud	9.80%	24.31%	17.03%

Volatility & Risk

Clover Health Investments has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.

Institutional and Insider Ownership

19.8% of Clover Health Investments shares are owned by institutional investors. Comparatively, 10.2% of CareCloud shares are owned by institutional investors. 24.1% of Clover Health Investments shares are owned by company insiders. Comparatively, 14.7% of CareCloud shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Clover Health Investments and CareCloud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
CareCloud	0	3	1	0	2.25

Clover Health Investments currently has a consensus target price of $3.23, indicating a potential upside of 27.30%. CareCloud has a consensus target price of $2.38, indicating a potential downside of 18.10%. Given Clover Health Investments’ higher possible upside, research analysts plainly believe Clover Health Investments is more favorable than CareCloud.

Summary

CareCloud beats Clover Health Investments on 8 of the 13 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 CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.