Butterfly Network (NYSE:BFLY – Get Free Report) and Outset Medical (NASDAQ:OM – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Butterfly Network and Outset Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Butterfly Network | -90.31% | -37.80% | -27.13% |
| Outset Medical | -73.12% | -71.37% | -30.11% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Butterfly Network and Outset Medical, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Butterfly Network | 1 | 1 | 3 | 0 | 2.40 |
| Outset Medical | 1 | 1 | 2 | 1 | 2.60 |
Valuation and Earnings
This table compares Butterfly Network and Outset Medical”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Butterfly Network | $82.06 million | 11.65 | -$72.49 million | ($0.33) | -11.47 |
| Outset Medical | $113.69 million | 0.57 | -$127.98 million | ($13.05) | -0.27 |
Butterfly Network has higher earnings, but lower revenue than Outset Medical. Butterfly Network is trading at a lower price-to-earnings ratio than Outset Medical, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
37.9% of Butterfly Network shares are owned by institutional investors. 25.2% of Butterfly Network shares are owned by company insiders. Comparatively, 2.4% of Outset Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Butterfly Network has a beta of 2.34, indicating that its stock price is 134% more volatile than the S&P 500. Comparatively, Outset Medical has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.
Summary
Butterfly Network beats Outset Medical on 9 of the 15 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 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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