Critical Review: American Well (NYSE:AMWL) versus 10x Genomics (NASDAQ:TXG)

American Well (NYSE:AMWLGet Free Report) and 10x Genomics (NASDAQ:TXGGet Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Volatility & Risk

American Well has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, 10x Genomics has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for American Well and 10x Genomics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Well 1 3 1 0 2.00
10x Genomics 1 10 4 0 2.20

American Well presently has a consensus target price of $8.60, indicating a potential downside of 19.74%. 10x Genomics has a consensus target price of $32.08, indicating a potential downside of 31.75%. Given American Well’s higher possible upside, analysts plainly believe American Well is more favorable than 10x Genomics.

Earnings & Valuation

This table compares American Well and 10x Genomics”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Well $249.32 million 0.71 -$95.70 million ($5.42) -1.98
10x Genomics $642.82 million 9.28 -$43.54 million ($0.17) -276.53

10x Genomics has higher revenue and earnings than American Well. 10x Genomics is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Well and 10x Genomics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Well -37.02% -32.11% -24.12%
10x Genomics -3.55% -2.86% -2.23%

Institutional & Insider Ownership

56.0% of American Well shares are owned by institutional investors. Comparatively, 84.7% of 10x Genomics shares are owned by institutional investors. 12.8% of American Well shares are owned by insiders. Comparatively, 8.8% of 10x Genomics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

10x Genomics beats American Well on 11 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 10x Genomics

(Get Free Report)

10x Genomics, Inc., a life science technology company, develops and sells instruments, consumables, and software for analyzing biological systems in the America, Europe, the Middle East, Africa, China, and the Asia Pacific. The company provides chromium, chromium connect, and chromium controller instruments, microfluidic chips, slides, reagents, and other consumables products. Its single cell solutions runs on its chromium instruments, which include single cell gene expression for measuring gene activity and networks on a cell-by-cell basis; single cell gene expression flex; single cell immune profiling used to study the immune system; single cell Assay for Transposase Accessible Chromati (ATAC) solution to understand the epigenetic state; and single cell multiome ATAC + gene expression which enables simultaneous interrogation of both the RNA and chromatin accessibility, using ATAC in a single cell. The company also provides Visium platform which enables researchers to understand the spatial positions of biological analytes within tissues at high resolution; and Xenium platform for in situ analysis. It serves various academic, government, biopharmaceutical, biotechnology, and other institutions. The company was formerly known as 10X Technologies, Inc. and changed its name to 10x Genomics, Inc. in November 2014. 10x Genomics, Inc. was incorporated in 2012 and is headquartered in Pleasanton, California.

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