American Well (NYSE:AMWL – Get Free Report) and Weave Communications (NYSE:WEAV – Get Free Report) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
American Well has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Earnings & Valuation
This table compares American Well and Weave Communications”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Well | $249.32 million | 0.84 | -$95.70 million | ($4.77) | -2.66 |
| Weave Communications | $239.02 million | 2.47 | -$28.05 million | ($0.25) | -29.50 |
Weave Communications has lower revenue, but higher earnings than American Well. Weave Communications 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
56.0% of American Well shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 12.8% of American Well shares are owned by insiders. Comparatively, 16.4% of Weave Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for American Well and Weave Communications, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Well | 1 | 5 | 1 | 0 | 2.00 |
| Weave Communications | 1 | 5 | 2 | 0 | 2.12 |
American Well presently has a consensus target price of $9.50, indicating a potential downside of 25.00%. Weave Communications has a consensus target price of $7.84, indicating a potential upside of 6.31%. Given Weave Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Weave Communications is more favorable than American Well.
Profitability
This table compares American Well and Weave Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Well | -35.75% | -30.12% | -22.30% |
| Weave Communications | -7.97% | -21.14% | -8.41% |
Summary
Weave Communications 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 Weave Communications
Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.
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