Privia Health Group (NASDAQ:PRVA) versus Butterfly Network (NYSE:BFLY) Critical Analysis

Butterfly Network (NYSE:BFLY) and Privia Health Group (NASDAQ:PRVA) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Butterfly Network and Privia Health Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butterfly Network	1	1	3	0	2.40
Privia Health Group	0	3	13	0	2.81

Butterfly Network presently has a consensus target price of $5.25, indicating a potential upside of 33.25%. Privia Health Group has a consensus target price of $30.50, indicating a potential upside of 31.35%. Given Butterfly Network’s higher probable upside, research analysts clearly believe Butterfly Network is more favorable than Privia Health Group.

Institutional & Insider Ownership

37.9% of Butterfly Network shares are held by institutional investors. Comparatively, 94.5% of Privia Health Group shares are held by institutional investors. 25.2% of Butterfly Network shares are held by insiders. Comparatively, 10.7% of Privia Health Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Butterfly Network has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, Privia Health Group has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares Butterfly Network and Privia Health Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butterfly Network	$82.06 million	12.13	-$72.49 million	($0.33)	-11.94
Privia Health Group	$1.74 billion	1.64	$14.39 million	$0.13	178.62

Privia Health Group has higher revenue and earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Privia Health Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Butterfly Network and Privia Health Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butterfly Network	-90.31%	-37.80%	-27.13%
Privia Health Group	0.89%	2.52%	1.47%

Summary

Privia Health Group beats Butterfly Network on 10 of the 14 factors compared between the two stocks.

About Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.

About Privia Health Group

Privia Health Group, Inc. operates as a national physician-enablement company in the United States. The company collaborates with medical groups, health plans, and health systems to optimize physician practices, enhance patient experiences, and reward doctors for delivering care in-person and virtual settings. It offers technology and population health tools to enhance independent providers' workflows; management services organization that enable providers to focus on their patients by reducing administrative work; single-TIN medical group that facilitates payer negotiation, clinical integration and alignment of financial incentives; accountable care organization, which engage patients, reduce inappropriate utilization, and enhance coordination and patient quality metrics to drive value-based care; and network for purchasers and payers that enable providers to connect with new patient populations and create custom contracts. The company was founded in 2007 and is headquartered in Arlington, Virginia.