Head-To-Head Analysis: SOPHiA GENETICS (NASDAQ:SOPH) vs. Butterfly Network (NYSE:BFLY)

SOPHiA GENETICS (NASDAQ:SOPH) and Butterfly Network (NYSE:BFLY) 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, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$77.27 million	4.39	-$79.00 million	($0.51)	-9.71
Butterfly Network	$97.61 million	10.53	-$77.06 million	($0.31)	-13.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-44.22%	-50.60%	-21.00%
Butterfly Network	-78.95%	-33.13%	-23.73%

Volatility & Risk

SOPHiA GENETICS has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for SOPHiA GENETICS and Butterfly Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
Butterfly Network	1	2	3	0	2.33

SOPHiA GENETICS currently has a consensus target price of $7.00, indicating a potential upside of 41.41%. Butterfly Network has a consensus target price of $5.56, indicating a potential upside of 37.82%. Given SOPHiA GENETICS’s higher possible upside, analysts plainly believe SOPHiA GENETICS is more favorable than Butterfly Network.

Insider & Institutional Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by company insiders. Comparatively, 25.2% of Butterfly Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Butterfly Network beats SOPHiA GENETICS on 9 of the 13 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 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.