Analyzing nCino (NASDAQ:NCNO) & CareCloud (NASDAQ:CCLD)

CareCloud (NASDAQ:CCLD) and nCino (NASDAQ:NCNO) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Institutional & Insider Ownership

10.2% of CareCloud shares are owned by institutional investors. Comparatively, 94.8% of nCino shares are owned by institutional investors. 38.4% of CareCloud shares are owned by insiders. Comparatively, 28.4% of nCino shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for CareCloud and nCino, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	1	0	2.33
nCino	0	5	11	0	2.69

CareCloud currently has a consensus price target of $2.50, indicating a potential upside of 63.40%. nCino has a consensus price target of $42.50, indicating a potential upside of 46.65%. Given CareCloud’s higher probable upside, research analysts plainly believe CareCloud is more favorable than nCino.

Risk & Volatility

CareCloud has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, nCino has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares CareCloud and nCino’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%
nCino	-3.46%	1.62%	1.22%

Earnings and Valuation

This table compares CareCloud and nCino”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$111.01 million	0.22	-$48.67 million	($0.20)	-7.65
nCino	$522.98 million	6.42	-$42.35 million	($0.17)	-170.47

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

Summary

nCino 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 nCino

nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. Its nCino Bank Operating System connects financial institution employees, clients and third parties on a single cloud-based platform which include client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and powerful ecosystem. The company's nIQ, an application suite that utilizes data analytics and artificial intelligence and machine learning to provide its customers with automation and insights into their operations, such as tools for analyzing, measuring, and managing credit risk, as well as to enhance their ability to comply with regulatory requirements. It also offers SimpleNexus, a cloud-based mobile-first homeownership software solution. The company serves financial institution customers, including global financial institutions, enterprise banks, regional banks, community banks, credit unions, new market entrants, and independent mortgage banks through business development representatives, account executives, field sales engineers, and customer success managers. nCino, Inc. was founded in 2011 and is headquartered in Wilmington, North Carolina.