Analyzing American Well (NYSE:AMWL) and CareCloud (NASDAQ:CCLD)

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

Volatility & Risk

American Well has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Well and CareCloud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Well	0	6	1	0	2.14
CareCloud	0	2	1	0	2.33

American Well currently has a consensus target price of $9.17, suggesting a potential upside of 38.76%. CareCloud has a consensus target price of $2.50, suggesting a potential downside of 32.98%. Given American Well’s higher probable upside, research analysts clearly believe American Well is more favorable than CareCloud.

Insider and Institutional Ownership

56.1% of American Well shares are held by institutional investors. Comparatively, 10.2% of CareCloud shares are held by institutional investors. 12.8% of American Well shares are held by company insiders. Comparatively, 14.7% of CareCloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Well	-46.15%	-41.99%	-30.80%
CareCloud	10.08%	23.51%	16.68%

Valuation and Earnings

This table compares American Well and CareCloud”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Well	$254.36 million	0.42	-$208.14 million	($8.07)	-0.82
CareCloud	$111.79 million	1.41	$7.85 million	($0.04)	-93.25

CareCloud has lower revenue, but higher earnings than American Well. CareCloud 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

CareCloud beats American Well on 9 of the 13 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 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.