Butterfly Network (NYSE:BFLY – Get Free Report) and HeartSciences (NASDAQ:HSCS – Get Free Report) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Risk & Volatility
Butterfly Network has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, HeartSciences has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for Butterfly Network and HeartSciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Butterfly Network | 2 | 1 | 4 | 0 | 2.29 |
| HeartSciences | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares Butterfly Network and HeartSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Butterfly Network | -78.95% | -32.05% | -23.52% |
| HeartSciences | N/A | -388.12% | -161.65% |
Earnings and Valuation
This table compares Butterfly Network and HeartSciences”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Butterfly Network | $97.61 million | 9.55 | -$77.06 million | ($0.31) | -11.90 |
| HeartSciences | N/A | N/A | -$8.77 million | ($6.88) | -0.38 |
HeartSciences has lower revenue, but higher earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than HeartSciences, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
37.9% of Butterfly Network shares are held by institutional investors. Comparatively, 17.2% of HeartSciences shares are held by institutional investors. 25.2% of Butterfly Network shares are held by company insiders. Comparatively, 1.8% of HeartSciences shares are held 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.
Summary
Butterfly Network beats HeartSciences on 8 of the 13 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 HeartSciences
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 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.
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