American Well (NYSE:AMWL) and MSP Recovery (NASDAQ:MSPR) Head to Head Contrast

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

Volatility and Risk

MSP Recovery has a beta of -2.93, suggesting that its share price is 393% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Institutional and Insider Ownership

3.8% of MSP Recovery shares are held by institutional investors. Comparatively, 56.1% of American Well shares are held by institutional investors. 50.5% of MSP Recovery shares are held by insiders. Comparatively, 11.8% of American Well shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MSP Recovery	-7,328.48%	-326.80%	-81.27%
American Well	-42.80%	-39.80%	-29.38%

Valuation and Earnings

This table compares MSP Recovery and American Well”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSP Recovery	$9.81 million	0.05	-$360.50 million	($572.83)	0.00
American Well	$254.36 million	0.29	-$208.14 million	($7.20)	-0.62

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

Analyst Ratings

This is a summary of current ratings and target prices for MSP Recovery and American Well, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	1	0	0	0	1.00
American Well	1	6	1	0	2.00

American Well has a consensus price target of $7.58, indicating a potential upside of 68.97%. Given American Well’s stronger consensus rating and higher probable upside, analysts clearly believe American Well is more favorable than MSP Recovery.

Summary

American Well beats MSP Recovery on 12 of the 14 factors compared between the two stocks.

About MSP Recovery

MSP Recovery, Inc. engages in the development of healthcare recoveries and data analytics software. It also focuses on the identification and recoveries of improper payments made by Medicare, Medicaid, and commercial insurance spaces using data and analytics. The company was founded by John H. Ruiz, Frank C. Quesada, and Diana Diaz on July 8, 2014 and is headquartered in Miami, 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.