Reviewing OLO (NYSE:OLO) and Phreesia (NYSE:PHR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Phreesia	-20.43%	-32.78%	-22.37%
OLO	-5.89%	0.34%	0.30%

Analyst Recommendations

This is a breakdown of recent recommendations for Phreesia and OLO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	0	0	13	0	3.00
OLO	0	1	2	0	2.67

Phreesia currently has a consensus price target of $31.15, suggesting a potential upside of 10.69%. OLO has a consensus price target of $8.67, suggesting a potential upside of 18.93%. Given OLO’s higher possible upside, analysts clearly believe OLO is more favorable than Phreesia.

Valuation and Earnings

This table compares Phreesia and OLO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$405.14 million	4.04	-$136.88 million	($1.47)	-19.15
OLO	$228.29 million	5.22	-$58.29 million	($0.10)	-72.86

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

Insider & Institutional Ownership

92.1% of Phreesia shares are owned by institutional investors. Comparatively, 93.4% of OLO shares are owned by institutional investors. 5.8% of Phreesia shares are owned by company insiders. Comparatively, 39.3% of OLO 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 and Risk

Phreesia has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, OLO has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

OLO beats Phreesia on 10 of the 14 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 OLO

Olo, Inc. engages in the provision of cloud-based, on-demand commerce platform for multi-location restaurant brands. It enables digital ordering and delivery. The company was founded in 2005 and is headquartered in New York, NY.