Head to Head Comparison: Phreesia (NYSE:PHR) & OptimizeRx (NASDAQ:OPRX)

OptimizeRx (NASDAQ:OPRX) and Phreesia (NYSE:PHR) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 92.1% of Phreesia shares are owned by institutional investors. 6.1% of OptimizeRx shares are owned by insiders. Comparatively, 5.8% of Phreesia shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	-27.41%	-4.92%	-3.41%
Phreesia	-20.43%	-32.78%	-22.37%

Analyst Recommendations

This is a summary of current recommendations and price targets for OptimizeRx and Phreesia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	0	2	7	0	2.78
Phreesia	0	1	10	0	2.91

OptimizeRx currently has a consensus price target of $9.19, indicating a potential upside of 67.35%. Phreesia has a consensus price target of $29.36, indicating a potential upside of 12.07%. Given OptimizeRx’s higher probable upside, analysts plainly believe OptimizeRx is more favorable than Phreesia.

Volatility & Risk

OptimizeRx has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares OptimizeRx and Phreesia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$88.18 million	1.15	-$17.57 million	($1.33)	-4.13
Phreesia	$405.14 million	3.76	-$136.88 million	($1.47)	-17.82

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

Summary

OptimizeRx beats Phreesia on 8 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

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.