Healthcare Triangle (NASDAQ:HCTI – Get Free Report) and Outset Medical (NASDAQ:OM – Get Free Report) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Healthcare Triangle and Outset Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Triangle | -70.43% | -166.88% | -43.00% |
| Outset Medical | -63.65% | -56.13% | -27.45% |
Earnings & Valuation
This table compares Healthcare Triangle and Outset Medical”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Triangle | $13.89 million | 0.36 | -$9.48 million | ($66.69) | -0.04 |
| Outset Medical | $117.59 million | 0.68 | -$81.65 million | ($4.16) | -1.03 |
Healthcare Triangle has higher earnings, but lower revenue than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than Healthcare Triangle, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.3% of Healthcare Triangle shares are owned by institutional investors. 0.1% of Healthcare Triangle shares are owned by insiders. Comparatively, 2.5% of Outset Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Healthcare Triangle has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Healthcare Triangle and Outset Medical, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Triangle | 1 | 0 | 0 | 0 | 1.00 |
| Outset Medical | 1 | 1 | 3 | 0 | 2.40 |
Outset Medical has a consensus target price of $10.00, suggesting a potential upside of 132.40%. Given Outset Medical’s stronger consensus rating and higher probable upside, analysts clearly believe Outset Medical is more favorable than Healthcare Triangle.
Summary
Outset Medical beats Healthcare Triangle on 11 of the 14 factors compared between the two stocks.
About Healthcare Triangle
Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
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