Head-To-Head Comparison: DarioHealth (NASDAQ:DRIO) vs. SOPHiA GENETICS (NASDAQ:SOPH)

SOPHiA GENETICS (NASDAQ:SOPH) and DarioHealth (NASDAQ:DRIO) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by insiders. Comparatively, 3.5% of DarioHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-93.86%	-132.47%	-45.97%
DarioHealth	-169.87%	-54.81%	-33.36%

Earnings & Valuation

This table compares SOPHiA GENETICS and DarioHealth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$77.27 million	8.99	-$79.00 million	($1.15)	-7.20
DarioHealth	$22.36 million	2.35	-$41.71 million	($6.13)	-1.17

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

Risk and Volatility

SOPHiA GENETICS has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for SOPHiA GENETICS and DarioHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	1	3	0	2.40
DarioHealth	1	1	2	0	2.25

SOPHiA GENETICS currently has a consensus price target of $10.00, suggesting a potential upside of 20.77%. DarioHealth has a consensus price target of $10.00, suggesting a potential upside of 39.66%. Given DarioHealth’s higher possible upside, analysts clearly believe DarioHealth is more favorable than SOPHiA GENETICS.

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.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.