Head-To-Head Comparison: Accolade (NASDAQ:ACCD) vs. American Well (NYSE:AMWL)

Accolade (NASDAQ:ACCDGet Rating) and American Well (NYSE:AMWLGet Rating) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Accolade and American Well, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accolade 1 1 10 0 2.75
American Well 0 4 5 0 2.56

Accolade presently has a consensus price target of $35.67, indicating a potential upside of 170.00%. American Well has a consensus price target of $9.11, indicating a potential upside of 141.67%. Given Accolade’s stronger consensus rating and higher possible upside, analysts plainly believe Accolade is more favorable than American Well.

Profitability

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

Net Margins Return on Equity Return on Assets
Accolade -33.86% -20.66% -12.45%
American Well -69.80% -14.21% -12.73%

Risk & Volatility

Accolade has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, American Well has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

72.2% of Accolade shares are owned by institutional investors. Comparatively, 42.3% of American Well shares are owned by institutional investors. 10.5% of Accolade shares are owned by company insiders. Comparatively, 14.7% of American Well shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Accolade and American Well’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accolade $170.36 million 5.19 -$50.65 million ($1.73) -7.64
American Well $252.79 million 3.93 -$176.33 million ($0.69) -5.46

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

Summary

Accolade beats American Well on 9 of the 14 factors compared between the two stocks.

About Accolade (Get Rating)

Accolade, Inc. develops and provides technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based technology and multimodal support from a team of health assistants and clinicians, including nurses, physician medical directors, and behavioral health specialists. It also provides second opinion consultation and health care decision support services. The company serves employers who provide their employees and their employees' families a single place to turn for their health, healthcare, and benefits needs. Accolade, Inc. was founded in 2007 and is headquartered in Plymouth Meeting, Pennsylvania.

About American Well (Get Rating)

American Well Corporation operates as a telehealth company that enables digital delivery of care for healthcare. The company products offers urgent care; scheduled visits; acute behavioral health; telestroke; pediatrics; retail health, school health, Its application offers urgent care; pediatrics; therapy; menopause nutrition; end-stage renal disease and dialysis; dermatology care; behavioral health therapy; musculoskeletal care. The company also provides telemedicine equipment, including telemedicine carts, peripherals, tyto care, TV kits, tablets, and kiosks. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.

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