Phreesia (NYSE:PHR – Get Free Report) and Claritev (NYSE:CTEV – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Phreesia and Claritev, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phreesia | 1 | 10 | 8 | 0 | 2.37 |
| Claritev | 1 | 2 | 6 | 0 | 2.56 |
Phreesia currently has a consensus price target of $14.00, suggesting a potential upside of 38.14%. Claritev has a consensus price target of $44.83, suggesting a potential upside of 100.06%. Given Claritev’s stronger consensus rating and higher probable upside, analysts plainly believe Claritev is more favorable than Phreesia.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phreesia | $480.59 million | 1.31 | $2.31 million | $0.17 | 59.62 |
| Claritev | $965.41 million | 0.39 | -$284.28 million | ($17.01) | -1.32 |
Phreesia has higher earnings, but lower revenue than Claritev. Claritev is trading at a lower price-to-earnings ratio than Phreesia, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Phreesia has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Claritev has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Profitability
This table compares Phreesia and Claritev’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phreesia | 2.06% | 5.22% | 3.02% |
| Claritev | -28.46% | N/A | -5.76% |
Insider and Institutional Ownership
92.1% of Phreesia shares are owned by institutional investors. Comparatively, 87.2% of Claritev shares are owned by institutional investors. 5.2% of Phreesia shares are owned by company insiders. Comparatively, 7.4% of Claritev shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Phreesia beats Claritev on 9 of the 14 factors compared between the two stocks.
About Phreesia
Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.
About Claritev
MultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services that reduce medical costs, through data-driven algorithms and insights that detect claims over-charges and negotiate or recommend reimbursement; and network-based services that provide contracted discounts with healthcare providers, as well as outsourced network development and management services. It provides payment and revenue integrity services, such as identifying and removing improper and unnecessary charges paid during the claim, as well as services to identify and help restore and preserve underpaid premium dollars. In addition, the company offers data and decision science services including a suite of solutions that apply modern methods of data science to produce descriptive, predictive, and prescriptive analytics that drive optimized benefit plan design, support decision-making, improve clinical outcomes, and reduce the total cost of care; and business-to-business healthcare payments and other services. It serves national and regional insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, TPAs, self-insured health plans, property and casualty insurers, bill review companies, and other companies involved in the claim adjudication process. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.
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