Comparing InnovAge (OTCMKTS:INNV) and agilon health (NYSE:AGL)

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

Institutional & Insider Ownership

12.3% of InnovAge shares are held by institutional investors. 0.4% of InnovAge shares are held by insiders. Comparatively, 3.2% of agilon health shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Volatility and Risk

InnovAge has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, agilon health has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

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

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

agilon health has a consensus target price of $7.81, suggesting a potential upside of 189.35%. Given agilon health’s higher probable upside, analysts clearly believe agilon health is more favorable than InnovAge.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnovAge	$763.86 million	1.05	-$6.52 million	($0.16)	-37.06
agilon health	$4.32 billion	0.26	-$262.60 million	($0.73)	-3.70

InnovAge has higher earnings, but lower revenue 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.

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.

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.