Critical Contrast: Phreesia (NYSE:PHR) & Rennova Health (OTCMKTS:RNVA)

Phreesia (NYSE:PHR) and Rennova Health (OTCMKTS:RNVA) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Phreesia and Rennova Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	9	9	0	2.42
Rennova Health	0	0	0	0	0.00

Phreesia presently has a consensus price target of $16.65, indicating a potential upside of 79.00%. Given Phreesia’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Phreesia is more favorable than Rennova Health.

Earnings and Valuation

This table compares Phreesia and Rennova Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$480.59 million	1.20	$2.31 million	$0.15	62.00
Rennova Health	$18.69 million	0.00	-$7.73 million	N/A	N/A

Phreesia has higher revenue and earnings than Rennova Health.

Insider & Institutional Ownership

92.1% of Phreesia shares are owned by institutional investors. 5.2% of Phreesia shares are owned by insiders. Comparatively, 55.5% of Rennova Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Phreesia and Rennova Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	1.85%	5.13%	3.12%
Rennova Health	N/A	N/A	N/A

Volatility and Risk

Phreesia has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Rennova Health has a beta of 21.14, suggesting that its stock price is 2,014% more volatile than the S&P 500.

Summary

Phreesia beats Rennova Health on 9 of the 11 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About Rennova Health

Rennova Health, Inc., together with its subsidiaries, provides health care services in the United States. It owns one operating hospital in Oneida, Tennessee; and a rural clinic in Williamsburg, Kentucky. The company is based in West Palm Beach, Florida.