American Well (NYSE:AMWL) vs. Relx (NYSE:RELX) Financial Analysis

American Well (NYSE:AMWL) and Relx (NYSE:RELX) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

American Well has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Relx has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares American Well and Relx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Well	-81.83%	-56.73%	-42.15%
Relx	N/A	N/A	N/A

Insider & Institutional Ownership

56.0% of American Well shares are owned by institutional investors. Comparatively, 15.0% of Relx shares are owned by institutional investors. 12.8% of American Well shares are owned by insiders. Comparatively, 0.0% of Relx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Well and Relx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Well	0	5	1	0	2.17
Relx	0	0	1	1	3.50

American Well presently has a consensus price target of $11.90, suggesting a potential upside of 36.36%. Given American Well’s higher probable upside, research analysts plainly believe American Well is more favorable than Relx.

Valuation and Earnings

This table compares American Well and Relx”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Well	$254.36 million	0.54	-$208.14 million	($14.00)	-0.62
Relx	$9.43 billion	9.57	$2.47 billion	$1.86	26.10

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

Summary

Relx beats American Well on 10 of the 14 factors compared between the two stocks.

About American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.

About Relx

RELX Plc engages in provision of information and analytics solutions for professional and business customers across industries. It operates through the following business segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. The Scientific, Technical & Medical segment is a global information analytics business that helps institutions and professionals advance healthcare, open science, and improve performance for the benefit of humanity. The Risk & Business Analytics segment provides customers with solutions and decision tools that combine public and industry specific content with advanced technology and analytics to assist them in evaluating and predicting risk and enhancing operational efficiency. The Legal segment is a global provider of legal, regulatory and business information and analytics that helps customers increase productivity, improve decision-making and outcomes and advance the rule of law around the world. The Exhibitions segment is an event business, enhancing the effect of face-to-face through data and digital tools. The company was founded by Albert Edward Reed in 1903 and is headquartered in London, the United Kingdom.