Phreesia and Marchex Compared: Which Small-Cap Medical Company is the Superior Investment?

In the realm of small-cap medical companies, Phreesia and Marchex have emerged as key players. Today, we will compare these two businesses based on various factors to determine which one holds the edge as a superior investment opportunity.

Analyst Ratings:
According to MarketBeat.com, Phreesia currently holds a consensus target price of $29.42, suggesting a potential upside of 29.53%. This indicates that equities research analysts view Phreesia as more favorable than Marchex, given its higher possible upside.

Profitability:
Valuation & Earnings:
While Marchex has lower revenue, it boasts higher earnings compared to Phreesia. Additionally, Marchex is currently trading at a lower price-to-earnings ratio than Phreesia, making it the more affordable option between the two stocks.

Institutional & Insider Ownership:
Institutional investors hold 92.1% of Phreesia shares, while Marchex sees 73.5% institutional ownership. Furthermore, insiders hold 5.8% of Phreesia shares, whereas Marchex has 20.3% insider ownership. These figures indicate that Phreesia enjoys stronger institutional support, suggesting long-term market outperformance.

Volatility and Risk:
Phreesia exhibits a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. On the other hand, Marchex has a beta of 1.97, signifying that its share price is 97% more volatile than the S&P 500.

Summary:
In a comparison of 13 factors, Marchex outperforms Phreesia on 7 of them. However, it is important to note that Phreesia holds a higher consensus target price, indicating a potentially greater upside. Investors should carefully consider these factors before making an investment decision.

Phreesia, based in Wilmington, Delaware, provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. Their solutions include appointment scheduling, patient self-registration, revenue cycle management, and content delivery.

Marchex, headquartered in Seattle, Washington, is a conversation intelligence company that offers conversational analytics and related solutions. Their products include marketing analytics, AI-powered text messaging, conversation intelligence platforms, and solutions for multi-location businesses.