Phreesia (NYSE:PHR) and MSP Recovery (NASDAQ:MSPR) Critical Contrast

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

Analyst Ratings

This is a summary of recent recommendations for MSP Recovery and Phreesia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSP Recovery	1	0	0	0	1.00
Phreesia	1	5	13	0	2.63

Phreesia has a consensus target price of $22.00, suggesting a potential upside of 164.07%. Given Phreesia’s stronger consensus rating and higher probable upside, analysts clearly believe Phreesia is more favorable than MSP Recovery.

Profitability

This table compares MSP Recovery and Phreesia’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%
Phreesia	0.48%	3.33%	2.43%

Earnings & Valuation

This table compares MSP Recovery and Phreesia”s top-line revenue, earnings per share 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
Phreesia	$480.59 million	1.05	-$58.53 million	($0.10)	-83.31

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

Institutional and Insider Ownership

3.8% of MSP Recovery shares are held by institutional investors. Comparatively, 92.1% of Phreesia shares are held by institutional investors. 50.5% of MSP Recovery shares are held by insiders. Comparatively, 5.5% of Phreesia shares are held by 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.

Risk and Volatility

MSP Recovery has a beta of -2.9, indicating that its share price is 390% less volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Summary

Phreesia beats MSP Recovery on 13 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 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.