Comparing American Well (NYSE:AMWL) & Standard BioTools (NASDAQ:LAB)

Standard BioTools (NASDAQ:LAB) and American Well (NYSE:AMWL) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Standard BioTools and American Well, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard BioTools	1	3	0	0	1.75
American Well	1	6	1	0	2.00

Standard BioTools currently has a consensus target price of $1.35, indicating a potential upside of 5.47%. American Well has a consensus target price of $8.33, indicating a potential upside of 112.31%. Given American Well’s stronger consensus rating and higher probable upside, analysts plainly believe American Well is more favorable than Standard BioTools.

Institutional & Insider Ownership

53.7% of Standard BioTools shares are owned by institutional investors. Comparatively, 56.1% of American Well shares are owned by institutional investors. 23.2% of Standard BioTools shares are owned by insiders. Comparatively, 11.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Standard BioTools has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Profitability

This table compares Standard BioTools and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard BioTools	-69.08%	-20.23%	-15.32%
American Well	-42.80%	-39.80%	-29.38%

Earnings and Valuation

This table compares Standard BioTools and American Well”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard BioTools	$169.74 million	2.90	-$138.88 million	($0.34)	-3.76
American Well	$254.36 million	0.25	-$208.14 million	($7.20)	-0.55

Standard BioTools has higher earnings, but lower revenue than American Well. Standard BioTools is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.

About Standard BioTools

Standard BioTools Inc., together with its subsidiaries, provides instruments, consumables, reagents, and software services for researchers and clinical laboratories in the Americas, Europe, the Middle East, Africa, and the Asia pacific. It operates through two segments: Proteomics and Genomics. The company offers analytical systems, such as CyTOF XT System, a CyTOF XT mass cytometry system performs automated high-parameter single-cell analysis using antibodies conjugated to metal isotopes; and Hyperion XTi imaging system, a spatial biology instrument. It also provides genomics, such as X9 Real-Time PCR System, a real-time PCR analytical instrument including pre-processing steps for microfluidics-based workflows using (integrated fluidic circuit) IFCs; and IFC Controllers, a controller which is designed to work with IFC formats. In addition, the company offers analytical instruments comprising Biomark HD system, a real-time PCR analytical instrument for microfluidics-based workflows using prepared IFCs. It sells its products to academic research institutions; translational research and medicine centers; cancer centers; clinical research laboratories; biopharmaceutical, biotechnology, and plant and animal research companies; and contract research organizations. It has license agreements with California Institute of Technology, Harvard University, and Caliper Life Sciences, Inc. The company was formerly known as Fluidigm Corporation and changed its name to Standard BioTools Inc. in April 2022. Fluidigm Corporation was incorporated in 1999 and is headquartered in South San Francisco, California.

About American Well

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.