Critical Analysis: Phreesia (NYSE:PHR) vs. OLO (NYSE:OLO)

Phreesia (NYSE:PHR) and OLO (NYSE:OLO) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Phreesia and OLO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$356.30 million	4.73	-$136.88 million	($1.47)	-19.71
OLO	$228.29 million	5.13	-$58.29 million	($0.10)	-71.54

OLO has lower revenue, but higher earnings than Phreesia. OLO is trading at a lower price-to-earnings ratio than Phreesia, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Phreesia and OLO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	-20.43%	-32.78%	-22.37%
OLO	-5.89%	0.34%	0.30%

Analyst Ratings

This is a breakdown of current ratings for Phreesia and OLO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	0	13	0	3.00
OLO	0	1	2	0	2.67

Phreesia currently has a consensus price target of $31.15, suggesting a potential upside of 7.52%. OLO has a consensus price target of $8.67, suggesting a potential upside of 21.13%. Given OLO’s higher probable upside, analysts plainly believe OLO is more favorable than Phreesia.

Insider & Institutional Ownership

92.1% of Phreesia shares are held by institutional investors. Comparatively, 93.4% of OLO shares are held by institutional investors. 5.8% of Phreesia shares are held by company insiders. Comparatively, 39.3% of OLO shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Phreesia has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, OLO has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

OLO beats Phreesia on 10 of the 14 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About OLO

Olo, Inc. engages in the provision of cloud-based, on-demand commerce platform for multi-location restaurant brands. It enables digital ordering and delivery. The company was founded in 2005 and is headquartered in New York, NY.