Outset Medical (NASDAQ:OM – Get Free Report) and Clover Health Investments (NASDAQ:CLOV – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Profitability
This table compares Outset Medical and Clover Health Investments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outset Medical | -68.34% | -53.37% | -28.03% |
| Clover Health Investments | -3.29% | -16.79% | -9.95% |
Analyst Ratings
This is a breakdown of recent recommendations for Outset Medical and Clover Health Investments, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outset Medical | 1 | 1 | 2 | 1 | 2.60 |
| Clover Health Investments | 1 | 3 | 1 | 0 | 2.00 |
Valuation & Earnings
This table compares Outset Medical and Clover Health Investments”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outset Medical | $119.48 million | 0.52 | -$127.98 million | ($6.79) | -0.50 |
| Clover Health Investments | $1.77 billion | 0.59 | -$43.01 million | ($0.11) | -18.36 |
Clover Health Investments has higher revenue and earnings than Outset Medical. Clover Health Investments is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
19.8% of Clover Health Investments shares are owned by institutional investors. 2.4% of Outset Medical shares are owned by company insiders. Comparatively, 24.1% of Clover Health Investments shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Outset Medical has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500.
Summary
Clover Health Investments beats Outset Medical on 10 of the 15 factors compared between the two stocks.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
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