Head-To-Head Contrast: American Well (NYSE:AMWL) and Predictive Oncology (NASDAQ:POAI)

American Well (NYSE:AMWL) and Predictive Oncology (NASDAQ:POAI) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares American Well and Predictive Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Well	-37.02%	-32.11%	-24.12%
Predictive Oncology	-5,065.23%	-732.73%	-235.55%

Risk & Volatility

American Well has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Predictive Oncology has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

56.1% of American Well shares are owned by institutional investors. Comparatively, 9.0% of Predictive Oncology shares are owned by institutional investors. 12.8% of American Well shares are owned by company insiders. Comparatively, 1.2% of Predictive Oncology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares American Well and Predictive Oncology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Well	$249.32 million	0.61	-$95.70 million	($5.42)	-1.69
Predictive Oncology	$1.66 million	14.50	-$12.66 million	($13.50)	-0.53

Predictive Oncology has lower revenue, but higher earnings than American Well. American Well is trading at a lower price-to-earnings ratio than Predictive Oncology, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for American Well and Predictive Oncology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Well	1	3	1	0	2.00
Predictive Oncology	1	0	0	0	1.00

American Well currently has a consensus price target of $7.20, indicating a potential downside of 21.22%. Given American Well’s stronger consensus rating and higher possible upside, analysts plainly believe American Well is more favorable than Predictive Oncology.

Summary

American Well beats Predictive Oncology 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 Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.