Reviewing First Choice Healthcare Solutions (OTCMKTS:FCHS) & InnovAge (NASDAQ:INNV)

InnovAge (NASDAQ:INNV) and First Choice Healthcare Solutions (OTCMKTS:FCHS) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations for InnovAge and First Choice Healthcare Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	2	0	0	0	1.00
First Choice Healthcare Solutions	0	0	0	0	0.00

InnovAge presently has a consensus price target of $5.00, indicating a potential downside of 14.24%. Given InnovAge’s stronger consensus rating and higher probable upside, equities research analysts plainly believe InnovAge is more favorable than First Choice Healthcare Solutions.

Volatility & Risk

InnovAge has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, First Choice Healthcare Solutions has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Valuation and Earnings

This table compares InnovAge and First Choice Healthcare Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$853.70 million	0.93	-$30.31 million	($0.13)	-44.85
First Choice Healthcare Solutions	$30,000.00	3.52	-$3.85 million	($0.10)	-0.03

First Choice Healthcare Solutions has lower revenue, but higher earnings than InnovAge. InnovAge is trading at a lower price-to-earnings ratio than First Choice Healthcare Solutions, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

12.3% of InnovAge shares are held by institutional investors. 1.0% of InnovAge shares are held by insiders. Comparatively, 30.8% of First Choice Healthcare Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares InnovAge and First Choice Healthcare Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-1.96%	-7.02%	-3.31%
First Choice Healthcare Solutions	N/A	N/A	-80.34%

Summary

First Choice Healthcare Solutions beats InnovAge on 7 of the 13 factors compared between the two stocks.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.

About First Choice Healthcare Solutions

First Choice Healthcare Solutions, Inc. provides healthcare services in the United States. It develops primary care and wellness clinics focused on providing life improvement services, such as anti-aging, weight management, hormone replacement, and pharmacy services. The company is headquartered in Melbourne, Florida.