HeartBeam (NASDAQ:BEAT) versus Pulmonx (NASDAQ:LUNG) Head-To-Head Survey

Pulmonx (NASDAQ:LUNG) and HeartBeam (NASDAQ:BEAT) are both small-cap healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Risk and Volatility

Pulmonx has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, HeartBeam has a beta of -0.78, suggesting that its share price is 178% less volatile than the S&P 500.

Profitability

This table compares Pulmonx and HeartBeam’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-55.03%	-90.27%	-37.25%
HeartBeam	N/A	-1,034.04%	-434.40%

Institutional & Insider Ownership

91.0% of Pulmonx shares are held by institutional investors. Comparatively, 7.8% of HeartBeam shares are held by institutional investors. 7.5% of Pulmonx shares are held by company insiders. Comparatively, 17.9% of HeartBeam shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Pulmonx and HeartBeam”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$90.50 million	0.96	-$54.00 million	($1.16)	-1.78
HeartBeam	N/A	N/A	-$21.01 million	($0.56)	-0.89

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pulmonx and HeartBeam, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	0	3	0	2.50
HeartBeam	1	2	5	1	2.67

Pulmonx currently has a consensus price target of $7.67, suggesting a potential upside of 272.17%. HeartBeam has a consensus price target of $4.00, suggesting a potential upside of 705.48%. Given HeartBeam’s stronger consensus rating and higher possible upside, analysts plainly believe HeartBeam is more favorable than Pulmonx.

Summary

HeartBeam beats Pulmonx on 9 of the 14 factors compared between the two stocks.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

About HeartBeam

BioTelemetry, Inc., a remote medical technology company, provides remote cardiac monitoring, remote blood glucose monitoring, centralized core laboratory services for clinical trials, and original equipment manufacturing services for healthcare and clinical research customers worldwide. It operates in two segments, Healthcare and Research. The Healthcare segment focuses on the remote cardiac monitoring to identify cardiac arrhythmias or heart rhythm disorders. This segment offers mobile cardiac telemetry services; and event monitoring services, which enable physicians to prescribe wireless event, digital loop event, memory loop event, memory loop event, and non-loop event monitors. It also provides traditional and extended Holter, pacemaker, international normalized ratio, implantable loop recorder, and other implantable cardiac device monitoring services. It serves cardiologists, electrophysiologists, neurologists, and primary care physicians. The Research segment offers laboratory services, such as cardiac monitoring, imaging, scientific consulting, and data management services for drug and medical device trials. Its centralized services comprise electrocardiogram, Holter monitoring, ambulatory blood pressure monitoring, echocardiography, multigated acquisition scan, imaging, protocol development, expert reporting, and statistical analysis. It also provides support services, such as project coordination, setup and management, equipment rental, data transfer, processing, analysis, and 24/7 customer support and site training. The company also focuses on manufacturing, testing, and marketing of cardiac devices and blood glucose monitoring devices, as well as offers contract manufacturing services. BioTelemetry, Inc. was founded in 1994 and is headquartered in Malvern, Pennsylvania.