Reviewing agilon health (NYSE:AGL) & InnovAge (OTCMKTS:INNV)

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

Valuation and Earnings

This table compares agilon health and InnovAge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
agilon health	$5.28 billion	0.20	-$262.60 million	($0.70)	-3.60
InnovAge	$763.86 million	1.05	-$6.52 million	($0.24)	-24.58

InnovAge has lower revenue, but higher earnings than agilon health. InnovAge is trading at a lower price-to-earnings ratio than agilon health, 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. 3.2% of agilon health shares are held by insiders. Comparatively, 0.4% of InnovAge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares agilon health and InnovAge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
agilon health	-5.57%	-29.91%	-10.19%
InnovAge	-6.17%	-13.04%	-7.48%

Analyst Ratings

This is a breakdown of current recommendations and price targets for agilon health and InnovAge, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
agilon health	3	13	4	0	2.05
InnovAge	0	0	0	0	N/A

agilon health currently has a consensus target price of $7.81, suggesting a potential upside of 210.02%. Given agilon health’s higher probable upside, equities analysts clearly believe agilon health is more favorable than InnovAge.

Risk and Volatility

agilon health has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Summary

agilon health beats InnovAge on 7 of the 13 factors compared between the two stocks.

About agilon health

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.

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 their 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, 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.