Critical Review: Clover Health Investments (NASDAQ:CLOV) & HeartSciences (NASDAQ:HSCS)

Clover Health Investments (NASDAQ:CLOV) and HeartSciences (NASDAQ:HSCS) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Clover Health Investments and HeartSciences, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clover Health Investments	1	3	1	0	2.00
HeartSciences	1	0	1	0	2.00

Clover Health Investments currently has a consensus target price of $3.82, suggesting a potential downside of 29.45%. HeartSciences has a consensus target price of $8.00, suggesting a potential upside of 173.50%. Given HeartSciences’ higher probable upside, analysts plainly believe HeartSciences is more favorable than Clover Health Investments.

Institutional and Insider Ownership

19.8% of Clover Health Investments shares are owned by institutional investors. Comparatively, 17.2% of HeartSciences shares are owned by institutional investors. 23.5% of Clover Health Investments shares are owned by insiders. Comparatively, 4.9% of HeartSciences shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Clover Health Investments and HeartSciences”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clover Health Investments	$1.92 billion	1.48	-$85.55 million	($0.12)	-45.08
HeartSciences	N/A	N/A	-$8.77 million	($4.94)	-0.59

HeartSciences has lower revenue, but higher earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than HeartSciences, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Clover Health Investments has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500. Comparatively, HeartSciences has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Profitability

This table compares Clover Health Investments and HeartSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clover Health Investments	-2.58%	-16.52%	-9.28%
HeartSciences	N/A	-333.50%	-140.18%

Summary

Clover Health Investments beats HeartSciences on 7 of the 11 factors compared between the two stocks.

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.

About HeartSciences

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.