Head to Head Comparison: SOPHiA GENETICS (NASDAQ:SOPH) and Butterfly Network (NYSE:BFLY)
by Renee Jackson · The Cerbat GemSOPHiA GENETICS (NASDAQ:SOPH – Get Free Report) and Butterfly Network (NYSE:BFLY – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
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% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for SOPHiA GENETICS and Butterfly Network, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SOPHiA GENETICS | 1 | 0 | 2 | 0 | 2.33 |
| Butterfly Network | 2 | 1 | 3 | 0 | 2.17 |
SOPHiA GENETICS presently has a consensus price target of $7.00, suggesting a potential upside of 48.94%. Butterfly Network has a consensus price target of $5.56, suggesting a potential upside of 42.45%. Given SOPHiA GENETICS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe SOPHiA GENETICS is more favorable than Butterfly Network.
Risk & Volatility
SOPHiA GENETICS has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500.
Institutional & Insider Ownership
31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 37.9% of Butterfly Network shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 25.2% of Butterfly Network shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares SOPHiA GENETICS and Butterfly Network”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SOPHiA GENETICS | $77.27 million | 4.17 | -$79.00 million | ($0.51) | -9.22 |
| Butterfly Network | $97.61 million | 10.19 | -$77.06 million | ($0.31) | -12.60 |
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.
Summary
Butterfly Network beats SOPHiA GENETICS on 9 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 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.