Analyzing SOPHiA GENETICS (NASDAQ:SOPH) and HeartSciences (NASDAQ:HSCS)

HeartSciences (NASDAQ:HSCS) and SOPHiA GENETICS (NASDAQ:SOPH) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares HeartSciences and SOPHiA GENETICS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartSciences	N/A	N/A	-$8.77 million	($8.30)	-0.44
SOPHiA GENETICS	$65.17 million	4.28	-$62.49 million	($0.44)	-9.39

HeartSciences has higher earnings, but lower revenue than SOPHiA GENETICS. SOPHiA GENETICS 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

17.2% of HeartSciences shares are owned by institutional investors. Comparatively, 31.6% of SOPHiA GENETICS shares are owned by institutional investors. 1.8% of HeartSciences shares are owned by company insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares HeartSciences and SOPHiA GENETICS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartSciences	N/A	-383.38%	-145.28%
SOPHiA GENETICS	-40.99%	-30.69%	-17.39%

Analyst Ratings

This is a summary of recent recommendations and price targets for HeartSciences and SOPHiA GENETICS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartSciences	0	0	2	0	3.00
SOPHiA GENETICS	0	0	1	0	3.00

HeartSciences presently has a consensus target price of $13.00, suggesting a potential upside of 256.16%. SOPHiA GENETICS has a consensus target price of $8.00, suggesting a potential upside of 93.70%. Given HeartSciences’ higher possible upside, research analysts clearly believe HeartSciences is more favorable than SOPHiA GENETICS.

Volatility & Risk

HeartSciences has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

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.

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.