Financial Review: HeartSciences (NASDAQ:HSCS) vs. iRhythm Technologies (NASDAQ:IRTC)

HeartSciences (NASDAQ:HSCS) and iRhythm Technologies (NASDAQ:IRTC) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares HeartSciences and iRhythm Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartSciences	N/A	N/A	-$8.77 million	($4.94)	-0.38
iRhythm Technologies	$747.14 million	5.01	-$44.55 million	($0.86)	-132.37

HeartSciences has higher earnings, but lower revenue than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than HeartSciences, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

HeartSciences has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for HeartSciences and iRhythm Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartSciences	1	0	1	0	2.00
iRhythm Technologies	1	1	11	2	2.93

HeartSciences presently has a consensus target price of $8.00, suggesting a potential upside of 325.53%. iRhythm Technologies has a consensus target price of $191.85, suggesting a potential upside of 68.52%. Given HeartSciences’ higher possible upside, equities research analysts plainly believe HeartSciences is more favorable than iRhythm Technologies.

Profitability

This table compares HeartSciences and iRhythm Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartSciences	N/A	-333.50%	-140.18%
iRhythm Technologies	-3.53%	-10.26%	-1.39%

Insider and Institutional Ownership

17.2% of HeartSciences shares are held by institutional investors. 4.9% of HeartSciences shares are held by insiders. Comparatively, 1.0% of iRhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

About HeartSciences

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.