Reviewing CareCloud (NASDAQ:CCLD) and WM Technology (NASDAQ:MAPS)

CareCloud (NASDAQ:CCLD) and WM Technology (NASDAQ:MAPS) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings and Valuation

This table compares CareCloud and WM Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$117.06 million	0.58	-$48.67 million	($3.20)	-1.30
WM Technology	$187.99 million	1.12	-$9.90 million	($0.03)	-45.98

WM Technology has higher revenue and earnings than CareCloud. WM Technology is trading at a lower price-to-earnings ratio than CareCloud, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

10.2% of CareCloud shares are held by institutional investors. Comparatively, 22.0% of WM Technology shares are held by institutional investors. 38.4% of CareCloud shares are held by company insiders. Comparatively, 23.2% of WM Technology shares are held 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.

Analyst Ratings

This is a summary of current recommendations and price targets for CareCloud and WM Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	2	0	2.50
WM Technology	0	0	1	0	3.00

CareCloud currently has a consensus target price of $3.67, suggesting a potential downside of 11.65%. WM Technology has a consensus target price of $2.61, suggesting a potential upside of 89.13%. Given WM Technology’s stronger consensus rating and higher possible upside, analysts clearly believe WM Technology is more favorable than CareCloud.

Profitability

This table compares CareCloud and WM Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareCloud	-35.25%	-87.98%	-50.79%
WM Technology	-1.02%	-1.68%	-1.08%

Risk and Volatility

CareCloud has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, WM Technology has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Summary

WM Technology beats CareCloud on 10 of the 14 factors compared between the two stocks.

About CareCloud

CareCloud, Inc., a healthcare information technology (IT) company, provides a suite of cloud-based solutions and related business services to healthcare providers and hospitals primarily in the United States. It operates in two segments, Healthcare IT and Medical Practice Management. The company's portfolio of proprietary software and business services includes technology-enabled business solutions; cloud-based software; digital health services; healthcare IT professional services and staffing; and medical practice management services. Its technology-enabled business solutions comprise revenue cycle management services, healthcare claims clearinghouse, and medical coding and credentialing services; electronic health records, practice management software and related capabilities, patient experience management solutions, business intelligence and healthcare analytics platforms, and customized applications, interfaces, and various other technology solutions, as well as artificial intelligence, such as CareCloud cirrusAI, AI-powered clinical decision support, AI-powered virtual support assistant, AI-driven appeals, and CareCloud cirrusAI. In addition, the company provides chronic care management, remote patient monitoring, and telemedicine solutions; and professional and consulting services, workforce augmentation and on-demand staffing, and strategic advisory services. Further, it offers medical practice management services to medical practices comprising appropriate facilities, equipment, supplies, support services, nurses, and administrative support staff, as well as management, bill-paying, and financial advisory services. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinicians that render bills for their services. The company was formerly known as MTBC, Inc. and changed its name to CareCloud, Inc. in March 2021. CareCloud, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

About WM Technology

WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.