Critical Survey: AvidXchange (NASDAQ:AVDX) vs. CareCloud (NASDAQ:CCLD)

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

Institutional & Insider Ownership

10.2% of CareCloud shares are held by institutional investors. Comparatively, 80.6% of AvidXchange shares are held by institutional investors. 38.3% of CareCloud shares are held by company insiders. Comparatively, 10.4% of AvidXchange shares are held by company 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.

Risk & Volatility

CareCloud has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Valuation & Earnings

This table compares CareCloud and AvidXchange”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareCloud	$117.06 million	0.40	-$48.67 million	($3.20)	-0.89
AvidXchange	$380.72 million	5.87	-$47.33 million	N/A	N/A

AvidXchange has higher revenue and earnings than CareCloud.

Profitability

This table compares CareCloud and AvidXchange’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%
AvidXchange	-0.23%	0.74%	0.23%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CareCloud and AvidXchange, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareCloud	0	2	2	0	2.50
AvidXchange	2	6	6	0	2.29

CareCloud currently has a consensus target price of $3.67, suggesting a potential upside of 28.21%. AvidXchange has a consensus target price of $11.39, suggesting a potential upside of 4.81%. Given CareCloud’s stronger consensus rating and higher possible upside, analysts plainly believe CareCloud is more favorable than AvidXchange.

Summary

AvidXchange beats CareCloud on 9 of the 13 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 AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.