Clover Health Investments (NASDAQ:CLOV – Get Free Report) and Option Care Health (NASDAQ:OPCH – Get Free Report) are both mid-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
19.8% of Clover Health Investments shares are held by institutional investors. Comparatively, 98.0% of Option Care Health shares are held by institutional investors. 23.5% of Clover Health Investments shares are held by insiders. Comparatively, 1.7% of Option Care Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Clover Health Investments and Option Care Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 1 | 3 | 3 | 0 | 2.29 |
| Option Care Health | 0 | 14 | 2 | 0 | 2.12 |
Valuation & Earnings
This table compares Clover Health Investments and Option Care Health”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $1.92 billion | 1.26 | -$85.55 million | ($0.05) | -91.60 |
| Option Care Health | $5.65 billion | 0.84 | $207.59 million | $1.33 | 23.95 |
Option Care Health has higher revenue and earnings than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than Option Care Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Clover Health Investments and Option Care Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -0.74% | -4.20% | -2.28% |
| Option Care Health | 3.68% | 18.74% | 7.25% |
Volatility & Risk
Clover Health Investments has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500. Comparatively, Option Care Health has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Summary
Option Care Health beats Clover Health Investments on 8 of the 14 factors compared between the two stocks.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. is based in Franklin, Tennessee.
About Option Care Health
Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.
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