Critical Analysis: CareCloud (NASDAQ:CCLD) versus Pheton (NASDAQ:PTHL)

Pheton (NASDAQ:PTHL) and CareCloud (NASDAQ:CCLD) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Earnings & Valuation

This table compares Pheton and CareCloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pheton	$305,215.00	6.83	-$660,000.00	N/A	N/A
CareCloud	$120.50 million	0.83	$10.80 million	$0.07	33.57

CareCloud has higher revenue and earnings than Pheton.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pheton and CareCloud, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pheton	1	0	0	0	1.00
CareCloud	0	2	1	0	2.33

CareCloud has a consensus target price of $3.25, suggesting a potential upside of 38.30%. Given CareCloud’s stronger consensus rating and higher probable upside, analysts clearly believe CareCloud is more favorable than Pheton.

Volatility & Risk

Pheton has a beta of 5.4, meaning that its share price is 440% more volatile than the S&P 500. Comparatively, CareCloud has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

10.2% of CareCloud shares are owned by institutional investors. 14.8% of CareCloud shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pheton and CareCloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pheton	N/A	N/A	N/A
CareCloud	6.21%	27.07%	14.56%

Summary

CareCloud beats Pheton on 10 of the 12 factors compared between the two stocks.

About Pheton

Pheton Holdings Ltd. operates as a holding company with interests in providing healthcare solutions. The firm through its subsidiaries engages in the development and commercialization of brachytherapy TPS specifically used for radioactive particle implantation, a type of radiotherapy used in treating cancer patients by placing radioactive sources inside the patient that kill cancer cells and shrink tumors. The company was founded in 1998 and is headquartered in Beijing, China.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.