Critical Analysis: American Well (NYSE:AMWL) vs. Corpay (NYSE:CPAY)

Corpay (NYSE:CPAY) and American Well (NYSE:AMWL) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 56.0% of American Well shares are owned by institutional investors. 6.1% of Corpay shares are owned by company insiders. Comparatively, 12.8% of American Well shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corpay	26.14%	39.44%	7.54%
American Well	-84.27%	-52.49%	-40.22%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Corpay and American Well, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	4	10	1	2.80
American Well	0	4	0	0	2.00

Corpay presently has a consensus target price of $369.29, indicating a potential upside of 9.40%. American Well has a consensus target price of $12.50, indicating a potential upside of 67.34%. Given American Well’s higher possible upside, analysts plainly believe American Well is more favorable than Corpay.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.88 billion	6.07	$981.89 million	$14.02	24.08
American Well	$254.04 million	0.45	-$675.16 million	($14.63)	-0.51

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

Risk and Volatility

Corpay has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, American Well has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Summary

Corpay beats American Well on 13 of the 15 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

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.