Analyzing American Well (NYSE:AMWL) and Zepp Health (NYSE:ZEPP)

Zepp Health (NYSE:ZEPPGet Free Report) and American Well (NYSE:AMWLGet Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Risk and Volatility

Zepp Health has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Zepp Health and American Well, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zepp Health 1 0 1 0 2.00
American Well 1 6 1 0 2.00

Zepp Health presently has a consensus target price of $64.37, indicating a potential upside of 181.34%. American Well has a consensus target price of $7.58, indicating a potential upside of 71.18%. Given Zepp Health’s higher probable upside, equities analysts plainly believe Zepp Health is more favorable than American Well.

Valuation and Earnings

This table compares Zepp Health and American Well”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zepp Health $182.60 million 1.82 -$75.73 million ($4.11) -5.57
American Well $254.36 million 0.29 -$208.14 million ($7.20) -0.62

Zepp Health has higher earnings, but lower revenue than American Well. Zepp Health 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 Zepp Health and American Well’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zepp Health -28.28% -21.45% -9.20%
American Well -42.80% -39.80% -29.38%

Institutional & Insider Ownership

52.6% of Zepp Health shares are held by institutional investors. Comparatively, 56.1% of American Well shares are held by institutional investors. 36.0% of Zepp Health shares are held by insiders. Comparatively, 12.8% of American Well shares are held by 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.

Summary

Zepp Health beats American Well on 9 of the 12 factors compared between the two stocks.

About Zepp Health

(Get Free Report)

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.

About American Well

(Get Free Report)

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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