Critical Analysis: American Well (NYSE:AMWL) vs. 36Kr (NASDAQ:KRKR)

36Kr (NASDAQ:KRKR) and American Well (NYSE:AMWL) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares 36Kr and American Well’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
36Kr	-26.79%	-31.59%	-18.85%
American Well	-120.44%	-50.36%	-39.77%

Earnings & Valuation

This table compares 36Kr and American Well”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
36Kr	$302.70 million	0.02	-$12.71 million	($0.30)	-0.60
American Well	$254.91 million	0.59	-$675.16 million	($24.60)	-0.41

36Kr has higher revenue and earnings than American Well. 36Kr is trading at a lower price-to-earnings ratio than American Well, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for 36Kr and American Well, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
36Kr	0	0	0	0	N/A
American Well	0	4	0	0	2.00

American Well has a consensus target price of $15.67, indicating a potential upside of 54.66%. Given American Well’s higher probable upside, analysts plainly believe American Well is more favorable than 36Kr.

Institutional and Insider Ownership

0.1% of 36Kr shares are owned by institutional investors. Comparatively, 56.0% of American Well shares are owned by institutional investors. 39.4% of 36Kr shares are owned by company insiders. Comparatively, 12.8% of American Well shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

36Kr has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Summary

36Kr beats American Well on 7 of the 12 factors compared between the two stocks.

About 36Kr

36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.

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.