Analyzing MSP Recovery (NASDAQ:MSPR) & SOPHiA GENETICS (NASDAQ:SOPH)

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

Valuation & Earnings

This table compares SOPHiA GENETICS and MSP Recovery”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$65.17 million	5.49	-$62.49 million	($0.46)	-11.50
MSP Recovery	$9.81 million	0.11	-$360.50 million	($572.83)	0.00

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

Volatility & Risk

SOPHiA GENETICS has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, MSP Recovery has a beta of -2.93, suggesting that its share price is 393% less volatile than the S&P 500.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 3.8% of MSP Recovery shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by company insiders. Comparatively, 50.5% of MSP Recovery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SOPHiA GENETICS and MSP Recovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	1	0	2.00
MSP Recovery	1	0	0	0	1.00

SOPHiA GENETICS presently has a consensus price target of $7.00, suggesting a potential upside of 32.33%. Given SOPHiA GENETICS’s stronger consensus rating and higher possible upside, research analysts clearly believe SOPHiA GENETICS is more favorable than MSP Recovery.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-41.13%	-37.75%	-18.75%
MSP Recovery	-7,328.48%	-326.80%	-81.27%

Summary

SOPHiA GENETICS beats MSP Recovery on 12 of the 14 factors compared between the two stocks.

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 MSP Recovery

MSP Recovery, Inc. engages in the development of healthcare recoveries and data analytics software. It also focuses on the identification and recoveries of improper payments made by Medicare, Medicaid, and commercial insurance spaces using data and analytics. The company was founded by John H. Ruiz, Frank C. Quesada, and Diana Diaz on July 8, 2014 and is headquartered in Miami, FL.