Analyzing CareCloud (NASDAQ:CCLD) & Outset Medical (NASDAQ:OM)

Outset Medical (NASDAQ:OM) and CareCloud (NASDAQ:CCLD) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares Outset Medical and CareCloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outset Medical	-68.34%	-55.65%	-28.64%
CareCloud	8.96%	24.58%	17.11%

Analyst Ratings

This is a breakdown of current recommendations for Outset Medical and CareCloud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outset Medical	1	1	2	1	2.60
CareCloud	0	2	1	0	2.33

Outset Medical presently has a consensus target price of $10.00, indicating a potential upside of 116.92%. CareCloud has a consensus target price of $3.25, indicating a potential upside of 5.86%. Given Outset Medical’s stronger consensus rating and higher probable upside, research analysts clearly believe Outset Medical is more favorable than CareCloud.

Volatility & Risk

Outset Medical has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Insider and Institutional Ownership

10.2% of CareCloud shares are held by institutional investors. 2.4% of Outset Medical shares are held by company insiders. Comparatively, 14.8% of CareCloud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Outset Medical and CareCloud”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outset Medical	$119.48 million	0.71	-$81.65 million	($6.79)	-0.68
CareCloud	$120.50 million	1.08	$10.80 million	$0.08	38.38

CareCloud has higher revenue and earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.

Summary

CareCloud beats Outset Medical on 10 of the 15 factors compared between the two stocks.

About Outset Medical

Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.