SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and American Well (NYSE:AMWL – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Insider & Institutional Ownership
31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 56.1% of American Well shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 11.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SOPHiA GENETICS and American Well, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SOPHiA GENETICS | 0 | 0 | 1 | 0 | 3.00 |
| American Well | 0 | 6 | 1 | 0 | 2.14 |
Risk and Volatility
SOPHiA GENETICS has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Earnings & Valuation
This table compares SOPHiA GENETICS and American Well”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SOPHiA GENETICS | $65.17 million | 4.61 | -$62.49 million | ($0.44) | -10.11 |
| American Well | $254.36 million | 0.39 | -$208.14 million | ($8.07) | -0.76 |
SOPHiA GENETICS has higher earnings, but lower revenue than American Well. SOPHiA GENETICS is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SOPHiA GENETICS and American Well’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SOPHiA GENETICS | -40.99% | -30.69% | -17.39% |
| American Well | -46.15% | -41.99% | -30.80% |
Summary
SOPHiA GENETICS beats American Well on 8 of the 13 factors compared between the two stocks.
About SOPHiA GENETICS
SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.
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.
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