Analyzing American Well (NYSE:AMWL) and Advantage Solutions (NASDAQ:ADV)



American Well (NYSE:AMWL – Get Free Report) and Advantage Solutions (NASDAQ:ADV – Get Free Report) 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, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

56.1% of American Well shares are owned by institutional investors. Comparatively, 49.8% of Advantage Solutions shares are owned by institutional investors. 12.9% of American Well shares are owned by company insiders. Comparatively, 6.2% of Advantage Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares American Well and Advantage Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Well -137.32% -46.76% -37.98%
Advantage Solutions -1.35% -4.51% -1.31%

Analyst Recommendations

This is a summary of current ratings and price targets for American Well and Advantage Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Well 0 2 0 0 2.00
Advantage Solutions 0 2 2 0 2.50

American Well presently has a consensus price target of $1.00, indicating a potential upside of 79.08%. Advantage Solutions has a consensus price target of $3.43, indicating a potential downside of 19.78%. Given American Well’s higher possible upside, analysts clearly believe American Well is more favorable than Advantage Solutions.

Volatility & Risk

American Well has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Earnings & Valuation

This table compares American Well and Advantage Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Well $259.05 million 0.62 -$675.16 million ($1.23) -0.45
Advantage Solutions $4.22 billion 0.32 -$63.26 million ($0.20) -21.40

Advantage Solutions has higher revenue and earnings than American Well. Advantage Solutions is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.

Summary

Advantage Solutions beats American Well on 9 of the 14 factors compared between the two stocks.

About American Well

(Get Free Report)

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 Advantage Solutions

(Get Free Report)

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.



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