Health In Tech (NASDAQ:HIT – Get Free Report) and American Well (NYSE:AMWL – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings and target prices for Health In Tech and American Well, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Health In Tech | 1 | 0 | 1 | 1 | 2.67 |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
Health In Tech currently has a consensus price target of $3.50, suggesting a potential upside of 264.58%. American Well has a consensus price target of $9.50, suggesting a potential downside of 20.70%. Given Health In Tech’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Health In Tech is more favorable than American Well.
Risk and Volatility
Institutional & Insider Ownership
56.0% of American Well shares are owned by institutional investors. 77.7% of Health In Tech shares are owned by insiders. Comparatively, 12.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Health In Tech and American Well’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Health In Tech | N/A | N/A | N/A |
| American Well | -35.75% | -30.12% | -22.30% |
Valuation & Earnings
This table compares Health In Tech and American Well”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Health In Tech | $32.83 million | 1.92 | -$4.59 million | ($0.07) | -13.71 |
| American Well | $249.32 million | 0.80 | -$95.70 million | ($4.77) | -2.51 |
Health In Tech has higher earnings, but lower revenue than American Well. Health In Tech is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Summary
Health In Tech beats American Well on 11 of the 14 factors compared between the two stocks.
About Health In Tech
Health in Tech, Inc. engages in the provision of insurance technology platforms which offer a marketplace of processes in the healthcare industry. Its services include Stone Mountain Risk, eDIYBS, HI Card, HI Performance Network, and Ancillary Products. The company was founded by Tim Johnson in 2014 and is headquartered in Stuart, FL.
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.
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