Contrasting Augmedix (NASDAQ:AUGX) & Visa (NYSE:V)

Augmedix (NASDAQ:AUGX) and Visa (NYSE:V) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

Augmedix has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500. Comparatively, Visa has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Augmedix and Visa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Augmedix	$51.58 million	2.22	-$19.17 million	($0.43)	-5.44
Visa	$34.92 billion	14.41	$17.27 billion	$8.95	30.75

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

Profitability

This table compares Augmedix and Visa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Augmedix	-46.23%	-182.36%	-43.21%
Visa	54.72%	51.94%	21.66%

Insider and Institutional Ownership

87.1% of Augmedix shares are held by institutional investors. Comparatively, 82.2% of Visa shares are held by institutional investors. 11.0% of Augmedix shares are held by company insiders. Comparatively, 0.2% of Visa shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Augmedix and Visa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Augmedix	0	4	0	0	2.00
Visa	0	6	22	2	2.87

Augmedix presently has a consensus target price of $3.09, indicating a potential upside of 31.94%. Visa has a consensus target price of $310.22, indicating a potential upside of 12.74%. Given Augmedix’s higher probable upside, analysts clearly believe Augmedix is more favorable than Visa.

Summary

Visa beats Augmedix on 12 of the 15 factors compared between the two stocks.

About Augmedix

Augmedix, Inc. provides remote medical documentation solutions and live clinical support services in the United States. Its platform offers Augmedix Live that provides synchronous medical note documentation and point of care support; Augmedix Go Assist that offers asynchronous medical documentation based upon previously recorded visits; Augmedix Prep that provides patient demographics, past medical history, medication changes and other points from the patient's health record; and Augmedix Go, an autonomous, ambient AI mobile software application that offers fully automated medical documentation based upon recorded visits. The company enables clinicians to access its applications through mobile devices, such as smartphones. It serves health systems and specialty groups. The company was founded in 2013 and is headquartered in San Francisco, California.

About Visa

Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, deposit accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource that provides modular and value-added services for connecting merchants to payment processing; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Risk and Decision Manager, Visa Consumer Authentication Service, and payment-decisioning solutions for fraud prevention; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brand names. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.