Analyzing Hero Technologies (OTCMKTS:HENC) and AtriCure (NASDAQ:ATRC)

AtriCure (NASDAQ:ATRC) and Hero Technologies (OTCMKTS:HENC) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for AtriCure and Hero Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AtriCure	1	0	10	0	2.82
Hero Technologies	0	0	0	0	0.00

AtriCure currently has a consensus target price of $52.44, suggesting a potential upside of 33.55%. Given AtriCure’s stronger consensus rating and higher probable upside, analysts clearly believe AtriCure is more favorable than Hero Technologies.

Risk & Volatility

AtriCure has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Hero Technologies has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares AtriCure and Hero Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AtriCure	-5.55%	-2.54%	-1.93%
Hero Technologies	N/A	N/A	N/A

Institutional and Insider Ownership

99.1% of AtriCure shares are owned by institutional investors. 3.5% of AtriCure shares are owned by insiders. Comparatively, 0.2% of Hero Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares AtriCure and Hero Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AtriCure	$465.31 million	4.20	-$44.70 million	($0.61)	-64.38
Hero Technologies	N/A	N/A	N/A	N/A	N/A

Hero Technologies has lower revenue, but higher earnings than AtriCure.

Summary

AtriCure beats Hero Technologies on 7 of the 10 factors compared between the two stocks.

About AtriCure

AtriCure, Inc. develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure. In addition, the company sells Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.

About Hero Technologies

Hero Technologies Inc. operates as an early-stage cannabis company. It focuses on the provision of BlackBox, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and the cultivation of large flowering plants and create increased harvest efficiencies. The company also intends to offer cannabis genetic engineering farmland for medical and recreational cannabis cultivation, production, distribution, packaging, and retail operations, as well as for dispensaries. The company is based in Dover, Delaware.