Head to Head Review: Eargo (NASDAQ:EAR) vs. Heart Test Laboratories (NASDAQ:HSCS)

Eargo (NASDAQ:EAR – Get Rating) and Heart Test Laboratories (NASDAQ:HSCS – Get Rating) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Earnings & Valuation

This table compares Eargo and Heart Test Laboratories’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eargo	$32.12 million	0.25	-$157.75 million	N/A	N/A
Heart Test Laboratories	$10,000.00	911.31	-$4.83 million	N/A	N/A

Heart Test Laboratories has lower revenue, but higher earnings than Eargo.

Insider & Institutional Ownership

0.8% of Heart Test Laboratories shares are held by institutional investors. 9.2% of Eargo shares are held by company insiders. Comparatively, 14.6% of Heart Test Laboratories shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eargo and Heart Test Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eargo	0	0	0	0	N/A
Heart Test Laboratories	0	0	3	0	3.00

Heart Test Laboratories has a consensus price target of $4.77, suggesting a potential upside of 329.43%. Given Heart Test Laboratories’ higher possible upside, analysts clearly believe Heart Test Laboratories is more favorable than Eargo.

Profitability

This table compares Eargo and Heart Test Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eargo	-462.95%	-722.21%	-110.02%
Heart Test Laboratories	N/A	N/A	N/A

Summary

Heart Test Laboratories beats Eargo on 9 of the 10 factors compared between the two stocks.

About Eargo

(Get Rating)

Eargo, Inc., a medical device company, engages in enhancing the quality of life of people with hearing loss in the United States. The company markets and sells hearing aids. It sells its products direct-to-consumer and through omni-channel. The company was formerly known as Aria Innovations, Inc. and changed its name to Eargo, Inc. in November 2014. Eargo, Inc. was incorporated in 2010 and is headquartered in San Jose, California.

About Heart Test Laboratories

(Get Rating)

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional 12-lead resting ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.