Critical Analysis: Evaxion A/S (NASDAQ:EVAX) versus Butterfly Network (NYSE:BFLY)

Evaxion A/S (NASDAQ:EVAX) and Butterfly Network (NYSE:BFLY) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Evaxion A/S and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evaxion A/S	-316.03%	-319.52%	-63.56%
Butterfly Network	-71.79%	-30.53%	-21.80%

Risk and Volatility

Evaxion A/S has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.

Insider and Institutional Ownership

11.0% of Evaxion A/S shares are owned by institutional investors. Comparatively, 37.9% of Butterfly Network shares are owned by institutional investors. 41.6% of Evaxion A/S shares are owned by insiders. Comparatively, 25.2% of Butterfly Network shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Evaxion A/S and Butterfly Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evaxion A/S	0	0	2	0	3.00
Butterfly Network	0	1	3	0	2.75

Evaxion A/S presently has a consensus target price of $10.00, suggesting a potential upside of 240.14%. Butterfly Network has a consensus target price of $3.00, suggesting a potential upside of 91.69%. Given Evaxion A/S’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Evaxion A/S is more favorable than Butterfly Network.

Valuation and Earnings

This table compares Evaxion A/S and Butterfly Network”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evaxion A/S	$3.34 million	1.23	-$10.57 million	($1.32)	-2.23
Butterfly Network	$82.06 million	4.80	-$72.49 million	($0.28)	-5.59

Evaxion A/S has higher earnings, but lower revenue than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Evaxion A/S, indicating that it is currently the more affordable of the two stocks.

Summary

Butterfly Network beats Evaxion A/S on 9 of the 14 factors compared between the two stocks.

About Evaxion A/S

Evaxion Biotech A/S, a clinical-stage biotech company, engages in developing artificial intelligence-powered immunotherapies. The company develops EVX-01, which is in phase 2 global multi-center clinical trial for the treatment of metastatic melanoma; EVX-02, a DNA-based vaccine that is in Phase 1/2a trial designed to induce a therapeutic immune response in the adjuvant setting in patients with resected melanoma; and EVX-03, DNA-based cancer vaccine for the treatment of various cancers. Its programs also include some vaccines that are in pre-clinical stage, which includes EVX-B1 for the prevention of S. aureus-induced skin and soft tissue infections in patients undergoing elective abdominal hernia surgery; EVX-B2 to target diseases caused by N. gonorrhoeae; EVX-B3 for eliciting strong humoral antibody and cellular immune response to the bacterial pathogen; and EVX-V1, viral vaccine product candidate for targeting Cytomegalovirus. Evaxion Biotech A/S was incorporated in 2008 and is based in Horsholm, Denmark.

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.