Critical Review: OptimizeRx (NASDAQ:OPRX) vs. Phreesia (NYSE:PHR)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$88.18 million	1.16	-$17.57 million	($1.33)	-4.19
Phreesia	$405.14 million	3.80	-$136.88 million	($1.47)	-18.04

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.

Institutional & Insider 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 will outperform the market over the long term.

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 breakdown of current ratings and target prices for OptimizeRx and Phreesia, as provided 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 64.95%. Phreesia has a consensus price target of $29.36, indicating a potential upside of 10.72%. Given OptimizeRx’s higher probable upside, equities research analysts plainly believe OptimizeRx is more favorable than Phreesia.

Volatility & Risk

OptimizeRx has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

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.