American Well (NYSE:AMWL – Get Free Report) and Zepp Health (NYSE:ZEPP – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Risk & Volatility
American Well has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Zepp Health has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Profitability
This table compares American Well and Zepp Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -42.80% | -39.80% | -29.38% |
| Zepp Health | -28.28% | -21.45% | -9.20% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 6 | 1 | 0 | 2.00 |
| Zepp Health | 1 | 0 | 1 | 0 | 2.00 |
American Well presently has a consensus price target of $7.58, indicating a potential upside of 68.97%. Zepp Health has a consensus price target of $64.37, indicating a potential upside of 264.08%. Given Zepp Health’s higher possible upside, analysts plainly believe Zepp Health is more favorable than American Well.
Earnings & Valuation
This table compares American Well and Zepp Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $254.36 million | 0.29 | -$208.14 million | ($7.20) | -0.62 |
| Zepp Health | $182.60 million | 1.40 | -$75.73 million | ($4.11) | -4.30 |
Zepp Health has lower revenue, but higher earnings than American Well. Zepp Health is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.1% of American Well shares are owned by institutional investors. Comparatively, 52.6% of Zepp Health shares are owned by institutional investors. 11.8% of American Well shares are owned by insiders. Comparatively, 36.0% of Zepp Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Zepp Health beats American Well on 9 of the 12 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 Zepp Health
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
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