Financial Analysis: Predictive Oncology (NASDAQ:POAI) and Healthcare Triangle (NASDAQ:HCTI)

Healthcare Triangle (NASDAQ:HCTI) and Predictive Oncology (NASDAQ:POAI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of recent recommendations for Healthcare Triangle and Predictive Oncology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Triangle	1	0	0	0	1.00
Predictive Oncology	1	0	0	0	1.00

Risk & Volatility

Healthcare Triangle has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Predictive Oncology has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Healthcare Triangle shares are owned by institutional investors. Comparatively, 9.0% of Predictive Oncology shares are owned by institutional investors. 0.1% of Healthcare Triangle shares are owned by company insiders. Comparatively, 1.2% of Predictive Oncology shares are owned by company 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 Healthcare Triangle and Predictive Oncology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Triangle	-48.85%	N/A	-59.99%
Predictive Oncology	-5,065.23%	-732.73%	-235.55%

Earnings & Valuation

This table compares Healthcare Triangle and Predictive Oncology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Triangle	$11.70 million	0.15	-$5.97 million	($101.00)	0.00
Predictive Oncology	$1.66 million	6.87	-$12.66 million	($13.50)	-0.25

Healthcare Triangle has higher revenue and earnings than Predictive Oncology. Predictive Oncology is trading at a lower price-to-earnings ratio than Healthcare Triangle, indicating that it is currently the more affordable of the two stocks.

Summary

Healthcare Triangle beats Predictive Oncology on 6 of the 11 factors compared between the two stocks.

About Healthcare Triangle

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.

About Predictive Oncology

Predictive Oncology Inc. operates as a science-driven company on the oncology drug discovery. It provides various solutions for the oncology drug development. The company, through the integration of scientific rigor and machine learning, has developed the ability to advance molecules into medicine by introducing human diversity earlier into the discovery process with the pairing of artificial intelligence and the biobank of approximately 150K tumor samples. It operates through four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment provides services that include the application of AI, collaboration projects, and clinical testing. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using a self-contained automated system that conducts self-interaction chromatography screens using additives and excipients included in protein formulations resulting in soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is headquartered in Eagan, Minnesota.