Critical Analysis: SOPHiA GENETICS (NASDAQ:SOPH) & Weave Communications (NYSE:WEAV)

SOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and Weave Communications (NYSE:WEAV – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

SOPHiA GENETICS has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares SOPHiA GENETICS and Weave Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SOPHiA GENETICS -93.86% -132.47% -45.97%
Weave Communications -7.97% -21.14% -8.41%

Analyst Ratings

This is a summary of current recommendations for SOPHiA GENETICS and Weave Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SOPHiA GENETICS 1 1 3 0 2.40
Weave Communications 1 5 2 0 2.12

SOPHiA GENETICS currently has a consensus target price of $10.00, indicating a potential upside of 36.99%. Weave Communications has a consensus target price of $7.84, indicating a potential upside of 6.16%. Given SOPHiA GENETICS’s stronger consensus rating and higher possible upside, equities analysts clearly believe SOPHiA GENETICS is more favorable than Weave Communications.

Valuation and Earnings

This table compares SOPHiA GENETICS and Weave Communications”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SOPHiA GENETICS $77.27 million 7.93 -$79.00 million ($1.15) -6.35
Weave Communications $239.02 million 2.47 -$28.05 million ($0.25) -29.54

Weave Communications has higher revenue and earnings than SOPHiA GENETICS. Weave Communications is trading at a lower price-to-earnings ratio than SOPHiA GENETICS, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by company insiders. Comparatively, 16.4% of Weave Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Weave Communications beats SOPHiA GENETICS on 9 of the 14 factors compared between the two stocks.

About SOPHiA GENETICS

(Get Free Report)

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 Weave Communications

(Get Free Report)

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

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