Priority Technology (NASDAQ:PRTH) versus American Well (NYSE:AMWL) Financial Contrast

American Well (NYSE:AMWL) and Priority Technology (NASDAQ:PRTH) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Valuation and Earnings

This table compares American Well and Priority Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Well	$259.05 million	0.65	-$675.16 million	($14.63)	-0.75
Priority Technology	$755.61 million	1.05	-$1.31 million	($0.42)	-24.43

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

Institutional and Insider Ownership

56.1% of American Well shares are owned by institutional investors. Comparatively, 11.5% of Priority Technology shares are owned by institutional investors. 12.8% of American Well shares are owned by company insiders. Comparatively, 76.3% of Priority Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for American Well and Priority Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Well	0	3	1	0	2.25
Priority Technology	0	0	3	0	3.00

American Well presently has a consensus price target of $12.50, suggesting a potential upside of 13.66%. Priority Technology has a consensus price target of $14.33, suggesting a potential upside of 39.70%. Given Priority Technology’s stronger consensus rating and higher possible upside, analysts clearly believe Priority Technology is more favorable than American Well.

Volatility and Risk

American Well has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Priority Technology has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Profitability

This table compares American Well and Priority Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Well	-84.27%	-52.49%	-40.22%
Priority Technology	1.96%	-15.86%	1.52%

Summary

Priority Technology beats American Well on 11 of the 14 factors compared between the two stocks.

About American Well

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 Priority Technology

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Small and Medium-Sized Businesses (SMB) Payments, Business-To-Business (B2B) Payments, and Enterprise Payments. It offers SMB payments processing solutions for B2C transactions through independent sales organizations, financial institutions, independent software vendors, and other referral partners through its MX product suite, which includes MX Connect and MX Merchant products, such as MX Insights, MX Storefront, MX Retail, MX Invoice, MX B2B and ACH.com, and others, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance to resellers and merchant clients using core payment processing. The company also offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. In addition, it provides curated managed services; payment-adjacent technologies to facilitate the acceptance of electronic payments from customers; and Plastiq payables management software, which helps businesses in improving cash flow with instant access to working capital. Further, the company offers embedded finance and BaaS solutions to enterprise customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments; and managed services solutions that provide audience-specific programs for institutional partners and other third parties; and consulting and development solutions. It serves SMB, and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors. The company was founded in 2005 and is headquartered in Alpharetta, Georgia.