Head to Head Review: Alpha Tau Medical (NASDAQ:DRTS) & DarioHealth (NASDAQ:DRIO)

DarioHealth (NASDAQ:DRIO) and Alpha Tau Medical (NASDAQ:DRTS) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

DarioHealth has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Alpha Tau Medical has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

33.4% of DarioHealth shares are held by institutional investors. Comparatively, 2.7% of Alpha Tau Medical shares are held by institutional investors. 10.9% of DarioHealth shares are held by company insiders. Comparatively, 39.5% of Alpha Tau Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares DarioHealth and Alpha Tau Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-205.62%	-72.16%	-40.74%
Alpha Tau Medical	N/A	-38.62%	-29.89%

Earnings & Valuation

This table compares DarioHealth and Alpha Tau Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$27.04 million	1.07	-$59.43 million	($0.56)	-1.18
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.45)	-6.89

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

Analyst Recommendations

This is a breakdown of recent ratings for DarioHealth and Alpha Tau Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	0	1	2	0	2.67
Alpha Tau Medical	0	0	2	0	3.00

DarioHealth currently has a consensus target price of $2.00, indicating a potential upside of 203.03%. Alpha Tau Medical has a consensus target price of $8.00, indicating a potential upside of 158.06%. Given DarioHealth’s higher possible upside, equities analysts plainly believe DarioHealth is more favorable than Alpha Tau Medical.

Summary

Alpha Tau Medical beats DarioHealth on 7 of the 12 factors compared between the two stocks.

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.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.