Head-To-Head Review: Movano (NASDAQ:MOVE) and Butterfly Network (NYSE:BFLY)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Butterfly Network and Movano, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butterfly Network	1	1	3	0	2.40
Movano	1	0	0	0	1.00

Butterfly Network currently has a consensus target price of $5.25, suggesting a potential upside of 37.25%. Given Butterfly Network’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Butterfly Network is more favorable than Movano.

Valuation and Earnings

This table compares Butterfly Network and Movano”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butterfly Network	$82.06 million	11.77	-$72.49 million	($0.33)	-11.59
Movano	$1.01 million	12.21	-$23.73 million	($10.83)	-1.37

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

Risk and Volatility

Butterfly Network has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500. Comparatively, Movano has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Butterfly Network and Movano’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%
Movano	-3,409.60%	-647.91%	-225.03%

Institutional and Insider Ownership

37.9% of Butterfly Network shares are owned by institutional investors. Comparatively, 16.6% of Movano shares are owned by institutional investors. 25.2% of Butterfly Network shares are owned by company insiders. Comparatively, 10.4% of Movano shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Butterfly Network beats Movano on 11 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 Movano

Movano Inc. engages in developing a platform to deliver healthcare solutions at the intersection of medical and consumer devices. The company is involved in the development of Evie Ring, which is a wearable designed specifically for women that combines health and wellness metrics comprises resting heart rate, heart rate variability (HRV), blood oxygen saturation (SpO2), respiration rate, skin temperature variability, period and ovulation tracking, and menstrual symptom tracking, as well as activity profile, including steps, active minutes and calories burned, sleep stages and duration, and mood tracking. It develops System-on-a-Chip (SoC) for blood pressure or continuous glucose monitoring (CGM) systems. The company was formerly known as Maestro Sensors Inc. and changed its name to Movano Inc. in August 2018. Movano Inc. was incorporated in 2018 and is based in Pleasanton, California.