Head to Head Analysis: SOPHiA GENETICS (NASDAQ:SOPH) and Butterfly Network (NYSE:BFLY)

Butterfly Network (NYSE:BFLY) and SOPHiA GENETICS (NASDAQ:SOPH) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Insider and Institutional Ownership

37.9% of Butterfly Network shares are owned by institutional investors. Comparatively, 31.6% of SOPHiA GENETICS shares are owned by institutional investors. 25.2% of Butterfly Network shares are owned by company insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Butterfly Network and SOPHiA GENETICS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butterfly Network	-78.95%	-33.13%	-23.73%
SOPHiA GENETICS	-44.22%	-50.60%	-21.00%

Valuation & Earnings

This table compares Butterfly Network and SOPHiA GENETICS”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	10.71	-$77.06 million	($0.31)	-13.24
SOPHiA GENETICS	$77.27 million	4.47	-$79.00 million	($0.51)	-9.88

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butterfly Network	1	2	3	0	2.33
SOPHiA GENETICS	1	0	2	0	2.33

Butterfly Network presently has a consensus target price of $5.56, indicating a potential upside of 35.51%. SOPHiA GENETICS has a consensus target price of $7.00, indicating a potential upside of 38.89%. Given SOPHiA GENETICS’s higher probable upside, analysts plainly believe SOPHiA GENETICS is more favorable than Butterfly Network.

Volatility and Risk

Butterfly Network has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Butterfly Network beats SOPHiA GENETICS on 9 of the 13 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 SOPHiA GENETICS

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.