Critical Contrast: Alpha Tau Medical (NASDAQ:DRTS) & DarioHealth (NASDAQ:DRIO)

DarioHealth (NASDAQ:DRIO) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Risk & Volatility

DarioHealth has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

33.4% of DarioHealth shares are held by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are held by institutional investors. 10.9% of DarioHealth shares are held by insiders. Comparatively, 39.5% of Alpha Tau Medical shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares DarioHealth and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-205.62%	-72.16%	-40.74%
Alpha Tau Medical	N/A	-38.62%	-29.89%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$28.03 million	1.13	-$59.43 million	($0.56)	-1.29
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.45)	-6.67

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

Analyst Ratings

This is a summary of recent ratings for DarioHealth and Alpha Tau Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	0	1	2	0	2.67
Alpha Tau Medical	0	0	2	0	3.00

DarioHealth currently has a consensus price target of $2.00, indicating a potential upside of 177.78%. Alpha Tau Medical has a consensus price target of $8.00, indicating a potential upside of 166.67%. Given DarioHealth’s higher possible upside, equities analysts clearly believe DarioHealth is more favorable than Alpha Tau Medical.

Summary

Alpha Tau Medical beats DarioHealth on 7 of the 12 factors compared between the two stocks.

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.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.