Comparing Sonic Healthcare (OTCMKTS:SKHHY) & InnovAge (NASDAQ:INNV)

InnovAge (NASDAQ:INNV) and Sonic Healthcare (OTCMKTS:SKHHY) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for InnovAge and Sonic Healthcare, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	0	0	0	1.00
Sonic Healthcare	0	0	1	0	3.00

InnovAge currently has a consensus target price of $5.00, suggesting a potential upside of 11.36%. Sonic Healthcare has a consensus target price of $30.15, suggesting a potential upside of 116.91%. Given Sonic Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Sonic Healthcare is more favorable than InnovAge.

Risk & Volatility

InnovAge has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Sonic Healthcare has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

12.3% of InnovAge shares are held by institutional investors. Comparatively, 0.0% of Sonic Healthcare shares are held by institutional investors. 1.0% of InnovAge shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares InnovAge and Sonic Healthcare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	0.71	-$30.31 million	($0.23)	-19.52
Sonic Healthcare	$6.25 billion	1.10	$332.61 million	N/A	N/A

Sonic Healthcare has higher revenue and earnings than InnovAge.

Profitability

This table compares InnovAge and Sonic Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-3.55%	-12.02%	-5.73%
Sonic Healthcare	N/A	N/A	N/A

Summary

Sonic Healthcare beats InnovAge on 10 of the 12 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

About Sonic Healthcare

Sonic Healthcare Limited offers medical diagnostic services to medical practitioners, hospitals, community health services, and their collective patients. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, after-hours general practice services, general practice IT solutions, and community-based healthcare services. The company operates in Australia, the United Kingdom, Ireland, the United States, Germany, Switzerland, New Zealand, Belgium, and internationally. Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.