iRhythm Technologies (NASDAQ:IRTC) and American Well (NYSE:AMWL) Head to Head Analysis

iRhythm Technologies (NASDAQ:IRTC) and American Well (NYSE:AMWL) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-7.32%	-41.86%	-4.42%
American Well	-42.80%	-39.80%	-29.38%

Earnings & Valuation

This table compares iRhythm Technologies and American Well”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$591.84 million	9.02	-$113.29 million	($1.61)	-102.86
American Well	$254.36 million	0.30	-$208.14 million	($7.20)	-0.64

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

Risk and Volatility

iRhythm Technologies has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	1	1	11	1	2.86
American Well	1	6	1	0	2.00

iRhythm Technologies currently has a consensus price target of $219.23, indicating a potential upside of 32.39%. American Well has a consensus price target of $7.58, indicating a potential upside of 63.61%. Given American Well’s higher possible upside, analysts plainly believe American Well is more favorable than iRhythm Technologies.

Institutional and Insider Ownership

56.1% of American Well shares are owned by institutional investors. 0.7% of iRhythm Technologies shares are owned by insiders. Comparatively, 12.8% of American Well shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

iRhythm Technologies beats American Well on 9 of the 15 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

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.