Gaxos.ai (NASDAQ:GXAI – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Risk & Volatility
Gaxos.ai has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
Insider and Institutional Ownership
42.6% of Gaxos.ai shares are held by institutional investors. Comparatively, 12.3% of InnovAge shares are held by institutional investors. 3.2% of Gaxos.ai shares are held by company insiders. Comparatively, 1.0% of InnovAge shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaxos.ai | 1 | 0 | 0 | 0 | 1.00 |
| InnovAge | 2 | 1 | 1 | 0 | 1.75 |
InnovAge has a consensus target price of $10.50, suggesting a potential upside of 15.38%. Given InnovAge’s stronger consensus rating and higher possible upside, analysts plainly believe InnovAge is more favorable than Gaxos.ai.
Profitability
This table compares Gaxos.ai and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaxos.ai | -64.81% | -38.79% | -36.99% |
| InnovAge | -0.26% | -1.03% | -0.47% |
Valuation & Earnings
This table compares Gaxos.ai and InnovAge”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaxos.ai | $1.93 million | 2.42 | -$3.90 million | ($0.50) | -0.87 |
| InnovAge | $989.71 million | 1.25 | -$2.54 million | ($0.02) | -455.00 |
InnovAge has higher revenue and earnings than Gaxos.ai. InnovAge is trading at a lower price-to-earnings ratio than Gaxos.ai, indicating that it is currently the more affordable of the two stocks.
Summary
InnovAge beats Gaxos.ai on 9 of the 14 factors compared between the two stocks.
About Gaxos.ai
Gaxos.ai Inc. engages in developing artificial intelligence applications for various sectors. Its portfolio includes applications in mental and physical wellbeing, coaching, and gaming. In addition, it offers Gaxos, a gaming platform develop, design, acquire, and manage conventional games and combine these games with unconventional game mechanisms. The company was formerly known as The NFT Gaming Company, Inc. and changed its name to Gaxos.ai Inc. in January 2024. Gaxos.ai Inc. was incorporated in 2021 and is based in Roseland, New Jersey.
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.
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