Reviewing Precipio (NASDAQ:PRPO) & SOPHiA GENETICS (NASDAQ:SOPH)

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

Earnings & Valuation

This table compares SOPHiA GENETICS and Precipio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$65.17 million	4.98	-$62.49 million	($0.46)	-10.43
Precipio	$18.53 million	1.89	-$4.29 million	($0.82)	-24.46

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

Analyst Recommendations

This is a summary of recent ratings for SOPHiA GENETICS and Precipio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
Precipio	1	0	0	0	1.00

SOPHiA GENETICS presently has a consensus price target of $7.00, indicating a potential upside of 45.83%. Given SOPHiA GENETICS’s stronger consensus rating and higher possible upside, research analysts plainly believe SOPHiA GENETICS is more favorable than Precipio.

Volatility and Risk

SOPHiA GENETICS has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Precipio has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares SOPHiA GENETICS and Precipio’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%
Precipio	-5.50%	-10.07%	-6.71%

Institutional & Insider Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. Comparatively, 10.5% of Precipio shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by insiders. Comparatively, 16.9% of Precipio shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

SOPHiA GENETICS beats Precipio on 8 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 Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.