Head-To-Head Comparison: Clover Health Investments (NASDAQ:CLOV) and U.S. Physical Therapy (NYSE:USPH)

U.S. Physical Therapy (NYSE:USPH) and Clover Health Investments (NASDAQ:CLOV) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Institutional and Insider Ownership

19.8% of Clover Health Investments shares are held by institutional investors. 2.4% of U.S. Physical Therapy shares are held by insiders. Comparatively, 23.5% of Clover Health Investments shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for U.S. Physical Therapy and Clover Health Investments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Physical Therapy	0	2	4	1	2.86
Clover Health Investments	1	3	2	0	2.17

U.S. Physical Therapy presently has a consensus price target of $98.25, suggesting a potential upside of 19.40%. Clover Health Investments has a consensus price target of $4.75, suggesting a potential upside of 6.50%. Given U.S. Physical Therapy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe U.S. Physical Therapy is more favorable than Clover Health Investments.

Profitability

This table compares U.S. Physical Therapy and Clover Health Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Physical Therapy	3.97%	9.39%	3.65%
Clover Health Investments	-0.74%	-4.20%	-2.28%

Volatility and Risk

U.S. Physical Therapy has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Clover Health Investments has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.

Earnings and Valuation

This table compares U.S. Physical Therapy and Clover Health Investments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Physical Therapy	$780.99 million	1.57	$39.58 million	$0.17	484.05
Clover Health Investments	$1.92 billion	1.23	-$85.55 million	($0.05)	-89.20

U.S. Physical Therapy has higher earnings, but lower revenue than Clover Health Investments. Clover Health Investments is trading at a lower price-to-earnings ratio than U.S. Physical Therapy, indicating that it is currently the more affordable of the two stocks.

Summary

U.S. Physical Therapy beats Clover Health Investments on 11 of the 15 factors compared between the two stocks.

About U.S. Physical Therapy

U.S. Physical Therapy, Inc. operates outpatient physical therapy clinics. The company operates through Physical Therapy Operations and Industrial Injury Prevention Services segments. The company provides pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments through physical therapists and specialized certified athletic trainers for Fortune 500 companies, and other clients comprising insurers and their contractors. U.S. Physical Therapy, Inc. was founded in 1990 and is based in Houston, Texas.

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.