Icon (NASDAQ:ICLR – Get Free Report) and InnovAge (NASDAQ:INNV – Get Free Report) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Profitability
This table compares Icon and InnovAge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Icon | 5.35% | 8.73% | 4.96% |
| InnovAge | -1.22% | -4.73% | -2.20% |
Risk and Volatility
Icon has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Icon | 3 | 7 | 8 | 0 | 2.28 |
| InnovAge | 2 | 1 | 0 | 0 | 1.33 |
Icon currently has a consensus target price of $171.81, indicating a potential upside of 6.74%. InnovAge has a consensus target price of $7.00, indicating a potential downside of 32.37%. Given Icon’s stronger consensus rating and higher probable upside, analysts plainly believe Icon is more favorable than InnovAge.
Insider & Institutional Ownership
95.6% of Icon shares are owned by institutional investors. Comparatively, 12.3% of InnovAge shares are owned by institutional investors. 44.0% of Icon shares are owned by insiders. Comparatively, 1.0% of InnovAge shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Icon and InnovAge”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Icon | $8.25 billion | 1.49 | $229.34 million | $6.16 | 26.13 |
| InnovAge | $853.70 million | 1.65 | -$30.31 million | ($0.09) | -115.00 |
Icon has higher revenue and earnings than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than Icon, indicating that it is currently the more affordable of the two stocks.
Summary
Icon beats InnovAge on 13 of the 14 factors compared between the two stocks.
About Icon
ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It also offers clinical development services, including all phases of development, peri and post approval, data solutions, and site and patient access services; clinical trial management, consulting, and contract staffing services; and commercial services comprising clinical development strategy, planning and trial design, full study execution, and post-market commercialization. In addition, the company provides laboratory services, including bionanalytical, biomarker, vaccine, good manufacturing practice, and central laboratory services, as well as full-service and functional service partnerships to customers. Further, it offers adaptive trials, cardiac safety solutions, clinical and scientific operations, consulting and advisory, commercial positioning, decentralized and hybrid clinical trials, early clinical, laboratories, language services, medical imaging, real world intelligence, site and patient, and strategic solutions. The company serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. ICON Public Limited Company was incorporated in 1990 and is headquartered in Dublin, Ireland.
About InnovAge
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
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