Pro Medicus (OTCMKTS:PMCUF) vs. American Well (NYSE:AMWL) Critical Comparison

Pro Medicus (OTCMKTS:PMCUF) and American Well (NYSE:AMWL) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pro Medicus	N/A	N/A	N/A
American Well	-120.44%	-50.36%	-39.77%

Institutional and Insider Ownership

10.8% of Pro Medicus shares are owned by institutional investors. Comparatively, 56.0% of American Well shares are owned by institutional investors. 12.8% of American Well shares are owned by company 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.

Analyst Recommendations

This is a breakdown of current ratings for Pro Medicus and American Well, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pro Medicus	0	0	0	0	N/A
American Well	0	4	0	0	2.00

American Well has a consensus target price of $15.67, indicating a potential upside of 79.87%. Given American Well’s higher probable upside, analysts plainly believe American Well is more favorable than Pro Medicus.

Earnings and Valuation

This table compares Pro Medicus and American Well’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pro Medicus	N/A	N/A	N/A	$0.02	6,600.00
American Well	$254.91 million	0.51	-$675.16 million	($24.60)	-0.35

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

Summary

Pro Medicus beats American Well on 5 of the 9 factors compared between the two stocks.

About Pro Medicus

Pro Medicus Limited engages in the development and supply of healthcare imaging software and services to hospitals, diagnostic imaging groups, and other related health entities in Australia, North America, and Europe. The company offers Visage radiology information systems (RIS), a proprietary medical software for practice management, training, installation, professional services, and after-sale support and service products; and Promedicus.net, an e-health platform. It also provides healthcare imaging software that provides radiologists and clinicians with visualization capability for viewing 2-D, 3-D, and 4-D medical images, as well as picture archive and communication system (PACS)/digital imaging software; and integration products. In addition, the company offers Visage Ease Pro, a mobile application that provides users the ability to interpret various diagnostic imaging studies stored on a Visage 7 server. The company provides its products under the Visage RIS, Visage RIS/PACS, Visage 7, Visage Ease Pro, and Visage Ease names. Pro Medicus Limited was incorporated in 1983 and is headquartered in Richmond, Australia.

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.