American Well (NYSE:AMWL – Get Free Report) and Healthcare Triangle (NASDAQ:HCTI – Get Free Report) 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, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.
Volatility and Risk
American Well has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Healthcare Triangle has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Profitability
This table compares American Well and Healthcare Triangle’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -42.80% | -39.80% | -29.38% |
| Healthcare Triangle | -48.85% | N/A | -59.99% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 6 | 1 | 0 | 2.00 |
| Healthcare Triangle | 1 | 0 | 0 | 0 | 1.00 |
American Well currently has a consensus price target of $7.58, suggesting a potential upside of 66.48%. Given American Well’s stronger consensus rating and higher possible upside, research analysts plainly believe American Well is more favorable than Healthcare Triangle.
Insider and Institutional Ownership
56.1% of American Well shares are owned by institutional investors. Comparatively, 0.3% of Healthcare Triangle shares are owned by institutional investors. 11.8% of American Well shares are owned by company insiders. Comparatively, 1.6% of Healthcare Triangle shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares American Well and Healthcare Triangle”s gross 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 | 0.29 | -$208.14 million | ($7.20) | -0.63 |
| Healthcare Triangle | $11.70 million | 0.20 | -$5.97 million | ($101.00) | 0.00 |
Healthcare Triangle has lower revenue, but higher earnings than American Well. American Well is trading at a lower price-to-earnings ratio than Healthcare Triangle, indicating that it is currently the more affordable of the two stocks.
Summary
American Well beats Healthcare Triangle 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 Healthcare Triangle
Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.
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