SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and Precipio (NASDAQ:PRPO – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Profitability
This table compares SOPHiA GENETICS and Precipio’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SOPHiA GENETICS | -41.13% | -37.75% | -18.75% |
| Precipio | -5.50% | -10.07% | -6.71% |
Earnings and Valuation
This table compares SOPHiA GENETICS and Precipio”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SOPHiA GENETICS | $65.17 million | 5.44 | -$62.49 million | ($0.46) | -11.41 |
| Precipio | $18.53 million | 2.32 | -$4.29 million | ($0.82) | -29.93 |
Precipio has lower revenue, but higher earnings than SOPHiA GENETICS. Precipio is trading at a lower price-to-earnings ratio than SOPHiA GENETICS, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
SOPHiA GENETICS has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for SOPHiA GENETICS and Precipio, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SOPHiA GENETICS | 1 | 0 | 2 | 0 | 2.33 |
| Precipio | 1 | 0 | 0 | 0 | 1.00 |
SOPHiA GENETICS presently has a consensus target price of $7.00, suggesting a potential upside of 33.33%. Given SOPHiA GENETICS’s stronger consensus rating and higher probable upside, research analysts plainly believe SOPHiA GENETICS is more favorable than Precipio.
Institutional & Insider Ownership
31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 10.5% of Precipio shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by company insiders. Comparatively, 16.9% of Precipio shares are owned 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
SOPHiA GENETICS beats Precipio on 8 of the 14 factors compared between the two stocks.
About SOPHiA GENETICS
SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.
About Precipio
Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.
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