Phreesia (NYSE:PHR) & Marchex (NASDAQ:MCHX) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Phreesia	-25.73%	-39.34%	-27.13%
Marchex	-10.03%	-11.33%	-8.61%

Valuation and Earnings

This table compares Phreesia and Marchex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$389.96 million	3.29	-$136.88 million	($2.17)	-10.30
Marchex	$48.82 million	1.65	-$9.91 million	($0.15)	-12.27

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

Analyst Ratings

This is a summary of current ratings and target prices for Phreesia and Marchex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	1	11	0	2.92
Marchex	0	0	0	0	N/A

Phreesia presently has a consensus price target of $29.42, indicating a potential upside of 31.62%. Given Phreesia’s higher probable upside, equities analysts clearly believe Phreesia is more favorable than Marchex.

Institutional and Insider Ownership

92.1% of Phreesia shares are held by institutional investors. Comparatively, 73.5% of Marchex shares are held by institutional investors. 5.8% of Phreesia shares are held by insiders. Comparatively, 20.3% of Marchex shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Phreesia has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Marchex has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Summary

Marchex beats Phreesia on 7 of the 13 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 Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.