Contrasting Butterfly Network (NYSE:BFLY) and Edwards Lifesciences (NYSE:EW)

Butterfly Network (NYSE:BFLY) and Edwards Lifesciences (NYSE:EW) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Butterfly Network and Edwards Lifesciences”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butterfly Network	$97.61 million	20.71	-$77.06 million	($0.29)	-26.18
Edwards Lifesciences	$6.07 billion	8.33	$1.07 billion	$1.74	50.45

Edwards Lifesciences has higher revenue and earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Edwards Lifesciences, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Butterfly Network has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, Edwards Lifesciences has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

37.9% of Butterfly Network shares are held by institutional investors. Comparatively, 79.5% of Edwards Lifesciences shares are held by institutional investors. 22.0% of Butterfly Network shares are held by company insiders. Comparatively, 0.3% of Edwards Lifesciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Butterfly Network and Edwards Lifesciences, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butterfly Network	1	1	5	1	2.75
Edwards Lifesciences	0	5	16	1	2.82

Butterfly Network presently has a consensus target price of $8.75, suggesting a potential upside of 15.24%. Edwards Lifesciences has a consensus target price of $100.27, suggesting a potential upside of 14.23%. Given Butterfly Network’s higher possible upside, equities research analysts clearly believe Butterfly Network is more favorable than Edwards Lifesciences.

Profitability

This table compares Butterfly Network and Edwards Lifesciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butterfly Network	-66.74%	-33.99%	-22.96%
Edwards Lifesciences	15.43%	15.68%	12.05%

Summary

Edwards Lifesciences beats Butterfly Network on 10 of the 14 factors compared between the two stocks.

About Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.