Critical Review: Tivic Health Systems (NASDAQ:TIVC) & Butterfly Network (NYSE:BFLY)

Butterfly Network (NYSE:BFLY) and Tivic Health Systems (NASDAQ:TIVC) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Earnings & Valuation

This table compares Butterfly Network and Tivic Health Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butterfly Network	$82.06 million	6.52	-$72.49 million	($0.29)	-7.47
Tivic Health Systems	$780,000.00	4.38	N/A	N/A	N/A

Tivic Health Systems has lower revenue, but higher earnings than Butterfly Network.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Butterfly Network and Tivic Health Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butterfly Network	0	0	2	0	3.00
Tivic Health Systems	0	0	0	0	0.00

Butterfly Network currently has a consensus target price of $4.00, suggesting a potential upside of 84.76%. Given Butterfly Network’s stronger consensus rating and higher possible upside, equities analysts plainly believe Butterfly Network is more favorable than Tivic Health Systems.

Volatility and Risk

Butterfly Network has a beta of 2.54, suggesting that its share price is 154% more volatile than the S&P 500. Comparatively, Tivic Health Systems has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.

Profitability

This table compares Butterfly Network and Tivic Health Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butterfly Network	-75.56%	-29.97%	-21.13%
Tivic Health Systems	-4.07%	-0.67%	-0.57%

Insider and Institutional Ownership

37.9% of Butterfly Network shares are owned by institutional investors. Comparatively, 4.3% of Tivic Health Systems shares are owned by institutional investors. 25.2% of Butterfly Network shares are owned by insiders. Comparatively, 0.5% of Tivic Health Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Butterfly Network beats Tivic Health Systems on 8 of the 11 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 Tivic Health Systems

Tivic Health Systems Inc. operates as a health tech company, focuses on developing and commercializing bioelectronic medicine. Its primary product is ClearUP, a bioelectronic medicine for the treatment of sinus and nasal inflammation. The company sells its products on direct-to-consumer channel through its own websites; and platforms, such as Amazon.com and Walmart.com, as well as to U.S. online retailers, such as BestBuy and FSAStore and through distributors. Tivic Health Systems, Inc. was incorporated in 2016 and is headquartered in Hayward, California.