Zhongchao (NASDAQ:ZCMD – Get Free Report) and American Well (NYSE:AMWL – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
1.7% of Zhongchao shares are owned by institutional investors. Comparatively, 56.0% of American Well shares are owned by institutional investors. 28.6% of Zhongchao shares are owned by insiders. Comparatively, 12.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for Zhongchao and American Well, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zhongchao | 1 | 0 | 0 | 0 | 1.00 |
| American Well | 1 | 3 | 1 | 0 | 2.00 |
Profitability
This table compares Zhongchao and American Well’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zhongchao | N/A | N/A | N/A |
| American Well | -37.02% | -32.11% | -24.12% |
Volatility & Risk
Zhongchao has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
Valuation and Earnings
This table compares Zhongchao and American Well”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zhongchao | $11.37 million | 0.16 | -$6.31 million | N/A | N/A |
| American Well | $237.38 million | 0.92 | -$95.70 million | ($5.42) | -2.43 |
Zhongchao has higher earnings, but lower revenue than American Well.
Summary
American Well beats Zhongchao on 7 of the 12 factors compared between the two stocks.
About Zhongchao
Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.
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.
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