Clover Health Investments (NASDAQ:CLOV – Get Free Report) and The Pennant Group (NASDAQ:PNTG – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Profitability
This table compares Clover Health Investments and The Pennant Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| The Pennant Group | 2.93% | 10.33% | 4.20% |
Valuation & Earnings
This table compares Clover Health Investments and The Pennant Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $1.92 billion | 1.28 | -$85.55 million | ($0.05) | -93.04 |
| The Pennant Group | $947.71 million | 1.40 | $29.58 million | $0.90 | 42.34 |
The Pennant Group has lower revenue, but higher earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 85.9% of The Pennant Group shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by company insiders. Comparatively, 6.9% of The Pennant Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Clover Health Investments has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500. Comparatively, The Pennant Group has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Clover Health Investments and The Pennant Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
| The Pennant Group | 0 | 1 | 5 | 0 | 2.83 |
Clover Health Investments presently has a consensus price target of $5.00, suggesting a potential upside of 7.48%. The Pennant Group has a consensus price target of $46.00, suggesting a potential upside of 20.72%. Given The Pennant Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Pennant Group is more favorable than Clover Health Investments.
Summary
The Pennant Group beats Clover Health Investments on 11 of the 14 factors compared between the two stocks.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
About The Pennant Group
The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
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