Analyzing Performant Healthcare (NASDAQ:PHLT) and InnovAge (NASDAQ:INNV)

Performant Healthcare (NASDAQ:PHLT) and InnovAge (NASDAQ:INNV) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Profitability

This table compares Performant Healthcare and InnovAge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Performant Healthcare	-0.64%	-0.04%	-0.03%
InnovAge	-3.55%	-12.02%	-5.73%

Valuation and Earnings

This table compares Performant Healthcare and InnovAge”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performant Healthcare	$137.36 million	4.53	-$9.90 million	($0.01)	-773.00
InnovAge	$853.70 million	0.79	-$30.31 million	($0.23)	-21.65

Performant Healthcare has higher earnings, but lower revenue than InnovAge. Performant Healthcare is trading at a lower price-to-earnings ratio than InnovAge, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Performant Healthcare and InnovAge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Performant Healthcare	0	4	1	0	2.20
InnovAge	1	1	0	0	1.50

Performant Healthcare presently has a consensus price target of $7.88, suggesting a potential upside of 1.88%. InnovAge has a consensus price target of $5.00, suggesting a potential upside of 0.40%. Given Performant Healthcare’s stronger consensus rating and higher probable upside, equities analysts plainly believe Performant Healthcare is more favorable than InnovAge.

Risk & Volatility

Performant Healthcare has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Institutional & Insider Ownership

77.2% of Performant Healthcare shares are owned by institutional investors. Comparatively, 12.3% of InnovAge shares are owned by institutional investors. 9.1% of Performant Healthcare shares are owned by company insiders. Comparatively, 1.4% of InnovAge shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Performant Healthcare beats InnovAge on 12 of the 14 factors compared between the two stocks.

About Performant Healthcare

Performant Healthcare, Inc. engages in the provision of technology-enabled audit, recovery, customer care, and related analytics services. Its services help identify improper payments, and in some markets, restructure and recover delinquent or defaulted assets and improper payments for both government and private clients. The company was founded in 1976 and is headquartered in Plantation, FL.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.