Comparing iRhythm Technologies (NASDAQ:IRTC) and CareCloud (NASDAQ:CCLD)

iRhythm Technologies (NASDAQ:IRTC) and CareCloud (NASDAQ:CCLD) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

10.2% of CareCloud shares are owned by institutional investors. 1.1% of iRhythm Technologies shares are owned by insiders. Comparatively, 14.7% of CareCloud shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for iRhythm Technologies and CareCloud, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	1	1	11	1	2.86
CareCloud	0	3	1	0	2.25

iRhythm Technologies presently has a consensus price target of $215.77, suggesting a potential upside of 14.01%. CareCloud has a consensus price target of $2.38, suggesting a potential downside of 22.89%. Given iRhythm Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe iRhythm Technologies is more favorable than CareCloud.

Earnings and Valuation

This table compares iRhythm Technologies and CareCloud”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$591.84 million	10.30	-$113.29 million	($1.61)	-117.55
CareCloud	$110.84 million	1.18	$7.85 million	$0.04	77.00

CareCloud has lower revenue, but higher earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares iRhythm Technologies and CareCloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-7.32%	-41.86%	-4.42%
CareCloud	9.80%	24.31%	17.03%

Volatility and Risk

iRhythm Technologies has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Summary

CareCloud beats iRhythm Technologies on 9 of the 15 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.