American Well (NYSE:AMWL – Get Free Report) and Privia Health Group (NASDAQ:PRVA – Get Free Report) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for American Well and Privia Health Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 3 | 1 | 0 | 2.00 |
| Privia Health Group | 0 | 3 | 11 | 0 | 2.79 |
American Well currently has a consensus price target of $7.20, suggesting a potential downside of 20.97%. Privia Health Group has a consensus price target of $31.15, suggesting a potential upside of 14.41%. Given Privia Health Group’s stronger consensus rating and higher probable upside, analysts plainly believe Privia Health Group is more favorable than American Well.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.60 | -$95.70 million | ($5.42) | -1.68 |
| Privia Health Group | $2.12 billion | 1.62 | $22.92 million | $0.16 | 170.19 |
Privia Health Group has higher revenue and earnings than American Well. American Well is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.0% of American Well shares are owned by institutional investors. Comparatively, 94.5% of Privia Health Group shares are owned by institutional investors. 12.8% of American Well shares are owned by company insiders. Comparatively, 5.7% of Privia Health Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares American Well and Privia Health Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -37.02% | -32.11% | -24.12% |
| Privia Health Group | 0.97% | 2.81% | 1.61% |
Risk and Volatility
American Well has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
Summary
Privia Health Group beats American Well on 12 of the 14 factors compared between the two stocks.
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.
About Privia Health Group
Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.
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