Financial Contrast: DarioHealth (NASDAQ:DRIO) versus Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and DarioHealth (NASDAQ:DRIO) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for Hyperfine and DarioHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	0	1	2	0	2.67
DarioHealth	0	1	2	0	2.67

Hyperfine currently has a consensus price target of $1.06, suggesting a potential upside of 52.78%. DarioHealth has a consensus price target of $2.00, suggesting a potential upside of 189.86%. Given DarioHealth’s higher possible upside, analysts clearly believe DarioHealth is more favorable than Hyperfine.

Earnings & Valuation

This table compares Hyperfine and DarioHealth”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$12.89 million	4.19	-$40.72 million	($0.54)	-1.28
DarioHealth	$27.04 million	1.13	-$42.75 million	($0.56)	-1.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-343.42%	-74.19%	-62.40%
DarioHealth	-159.80%	-65.81%	-38.41%

Volatility and Risk

Hyperfine has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Institutional & Insider Ownership

15.0% of Hyperfine shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 31.0% of Hyperfine shares are held by company insiders. Comparatively, 11.2% of DarioHealth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

DarioHealth beats Hyperfine on 8 of the 12 factors compared between the two stocks.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

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.