Financial Analysis: DarioHealth (NASDAQ:DRIO) versus CardioGenics (OTCMKTS:CGNH)

CardioGenics (OTCMKTS:CGNH) and DarioHealth (NASDAQ:DRIO) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

CardioGenics has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares CardioGenics and DarioHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CardioGenics	N/A	N/A	N/A
DarioHealth	-171.09%	-59.47%	-36.75%

Analyst Ratings

This is a breakdown of current ratings for CardioGenics and DarioHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CardioGenics	0	0	0	0	0.00
DarioHealth	1	2	2	0	2.20

DarioHealth has a consensus price target of $32.00, indicating a potential upside of 218.73%. Given DarioHealth’s stronger consensus rating and higher probable upside, analysts plainly believe DarioHealth is more favorable than CardioGenics.

Institutional & Insider Ownership

33.4% of DarioHealth shares are owned by institutional investors. 41.4% of CardioGenics shares are owned by company insiders. Comparatively, 11.2% of DarioHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares CardioGenics and DarioHealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CardioGenics	N/A	N/A	N/A	N/A	N/A
DarioHealth	$24.73 million	2.74	-$42.75 million	($11.16)	-0.90

CardioGenics has higher earnings, but lower revenue than DarioHealth.

About CardioGenics

CardioGenics Holdings Inc. engages in the development and commercialization of diagnostic test products for the in vitro diagnostics testing market in the United States, Canada, Europe, and internationally. Its products include QL Care Analyzer, a portable, stand-alone, and automated point-of-care (POC) immunoassay analyzer that uses a proprietary self-metering cartridge to perform immunoassay tests at the POC; a series of immunoassay tests to identify cardiac markers in the blood at the time of a heart attack; and paramagnetic beads that are used as solid surfaces in heterogeneous immunoassay tests by clinical and research laboratories. The company was formerly known as Jag Media Holdings, Inc. and changed its name to CardioGenics Holdings Inc. in 2009. The company was founded in 1997 and is headquartered in Mississauga, Canada.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.