P3 Health Partners (NASDAQ: PIII) and American Well (NYSE: AMWL) are two small-cap companies in the healthcare sector currently attracting investor attention. An analysis comparing their financial metrics, analyst recommendations, and growth potential reveals significant differences that may influence investment decisions.
Analyst Recommendations and Price Targets
According to MarketBeat, P3 Health Partners has a consensus price target of $12.50, suggesting a potential upside of 127.27%. In contrast, American Well’s consensus price target stands at $8.33, with a potential upside of 97.29%. These figures indicate that analysts view P3 Health Partners as a more attractive investment opportunity compared to American Well.
Financial Performance and Valuation
A direct comparison of revenue and earnings highlights P3 Health Partners’ stronger financial standing. The company reports higher revenue and earnings per share (EPS) than American Well. Notably, American Well is trading at a lower price-to-earnings ratio, which indicates it is currently the more affordable option among the two stocks.
Looking at risk and volatility, P3 Health Partners has a beta of 0.84, meaning its share price is 16% less volatile than the S&P 500 index. American Well, on the other hand, has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. This difference in volatility suggests that P3 Health Partners may represent a more stable investment.
Profitability metrics also favor P3 Health Partners. The company outperforms American Well in terms of net margins, return on equity, and return on assets, reinforcing its position as a stronger investment choice.
Company Profiles
P3 Health Partners, founded in 2020 and based in Henderson, Nevada, focuses on patient-centered, physician-led population health management. The company operates clinics and wellness centers across the United States, aiming to improve care delivery and patient outcomes.
In contrast, American Well, established in 2006 and headquartered in Boston, Massachusetts, offers a cloud-based platform known as Converge. This platform facilitates hybrid healthcare delivery, enabling healthcare providers to offer a blend of in-person and virtual care. American Well’s services include virtual primary care, chronic condition management, and specialty care programs, among others.
In summary, P3 Health Partners surpasses American Well in seven out of twelve key factors examined in this analysis. Investors looking for potential growth in the healthcare sector may find P3 Health Partners to be a more compelling choice based on its financial performance and analyst outlook.
