American Renal Associates (NYSE:ARA) versus EHang (NYSE:OTRK) Financial Analysis

American Renal Associates (NYSE:ARA) and EHang (NASDAQ:OTRK) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares American Renal Associates and EHang’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Renal Associates $822.52 million 0.26 -$13.79 million $0.26 24.81
EHang $35.10 million 18.55 -$25.66 million ($1.15) -33.27

American Renal Associates has higher revenue and earnings than EHang. EHang is trading at a lower price-to-earnings ratio than American Renal Associates, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Renal Associates has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, EHang has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Institutional and Insider Ownership

82.3% of American Renal Associates shares are held by institutional investors. Comparatively, 20.0% of EHang shares are held by institutional investors. 9.5% of American Renal Associates shares are held by company insiders. Comparatively, 58.2% of EHang shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings and target prices for American Renal Associates and EHang, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Renal Associates 0 3 0 0 2.00
EHang 0 0 1 0 3.00

American Renal Associates currently has a consensus price target of $8.67, suggesting a potential upside of 34.37%. Given American Renal Associates’ higher possible upside, equities research analysts clearly believe American Renal Associates is more favorable than EHang.

Profitability

This table compares American Renal Associates and EHang’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Renal Associates -2.14% 16.46% 1.22%
EHang -74.67% N/A -116.76%

Summary

American Renal Associates beats EHang on 8 of the 13 factors compared between the two stocks.

About American Renal Associates

American Renal Associates Holdings, Inc. operates as a dialysis services provider in the United States. It operates dialysis clinics focusing on joint venture partnerships with physicians. The company offers kidney dialysis services to patients suffering from chronic kidney failure or end stage renal disease. As of June 30, 2018, it owned and operated 233 dialysis clinics in partnership with 400 nephrologist partners treating approximately 16,000 patients in 26 states and the District of Columbia. The company was founded in 1999 and is headquartered in Beverly, Massachusetts.

About EHang

Ontrak, Inc. operates as an artificial intelligence powered, virtualized outpatient healthcare treatment company that provides in-person or telehealth intervention services to health plans and other third-party payors. Its Ontrak PRE (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends care pathways that people are willing to follow, and engages people who aren't getting the care they need. The company's technology-enabled, OnTrak, program is designed to treat health plan members with unaddressed behavioral health conditions that cause or exacerbate chronic medical diseases, such as diabetes, hypertension, coronary artery disease, COPD, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. The company was founded in 2003 and is headquartered in Santa Monica, California.

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