Hyperfine (NASDAQ:HYPR – Get Free Report) and Sonendo (NYSE:SONX – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices for Hyperfine and Sonendo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hyperfine | 1 | 1 | 3 | 0 | 2.40 |
| Sonendo | 0 | 0 | 0 | 0 | 0.00 |
Hyperfine presently has a consensus target price of $2.03, suggesting a potential upside of 133.77%. Given Hyperfine’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hyperfine is more favorable than Sonendo.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hyperfine | $11.40 million | 8.09 | -$35.57 million | ($0.38) | -2.29 |
| Sonendo | $44.40 million | 0.06 | -$60.92 million | ($71.12) | -0.01 |
Hyperfine has higher earnings, but lower revenue than Sonendo. Hyperfine is trading at a lower price-to-earnings ratio than Sonendo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hyperfine and Sonendo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hyperfine | -210.75% | -97.88% | -61.81% |
| Sonendo | -92.74% | -184.01% | -68.60% |
Risk & Volatility
Hyperfine has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Sonendo has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500.
Institutional & Insider Ownership
15.0% of Hyperfine shares are held by institutional investors. Comparatively, 28.7% of Sonendo shares are held by institutional investors. 26.3% of Hyperfine shares are held by insiders. Comparatively, 7.9% of Sonendo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Hyperfine beats Sonendo on 9 of the 14 factors compared between the two stocks.
About Hyperfine
Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.
About Sonendo
Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment, a technology platform designed for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of ethylenediaminetetraacetic acid EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. The company was incorporated in 2006 and is headquartered in Laguna Hills, California.
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