Financial Analysis: InnovAge (NASDAQ:INNV) and Vsee Health (NASDAQ:VSEE)

InnovAge (NASDAQ:INNV) and Vsee Health (NASDAQ:VSEE) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for InnovAge and Vsee Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnovAge	1	2	0	0	1.67
Vsee Health	0	0	0	0	0.00

InnovAge currently has a consensus price target of $6.00, suggesting a potential upside of 43.20%. Given InnovAge’s stronger consensus rating and higher probable upside, analysts plainly believe InnovAge is more favorable than Vsee Health.

Institutional & Insider Ownership

12.3% of InnovAge shares are owned by institutional investors. Comparatively, 1.0% of Vsee Health shares are owned by institutional investors. 1.4% of InnovAge shares are owned by insiders. Comparatively, 6.6% of Vsee Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares InnovAge and Vsee Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$786.51 million	0.72	-$21.34 million	($0.12)	-34.92
Vsee Health	$6.38 million	0.76	-$4.41 million	N/A	N/A

Vsee Health has lower revenue, but higher earnings than InnovAge.

Profitability

This table compares InnovAge and Vsee Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnovAge	-2.03%	-5.68%	-2.99%
Vsee Health	N/A	-182.59%	-58.26%

Summary

InnovAge beats Vsee Health on 6 of the 10 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 Vsee Health

VSee Health, Inc. provides telehealth care solutions. The company offers iDoc Telehealth solutions that treat and coordinate care for acutely ill patients in the neurointensive care, cardiac intensive care, and intensive care units for stroke, spinal cord, brain trauma, and other neurological conditions. Its telehealth platform provides a set of building blocks to solve needs of clients. VSee Health, Inc. is headquartered in Newton, Massachusetts.