Butterfly Network (NYSE:BFLY – Get Free Report) and Strata Skin Sciences (NASDAQ:SSKN – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
37.9% of Butterfly Network shares are held by institutional investors. Comparatively, 32.4% of Strata Skin Sciences shares are held by institutional investors. 25.2% of Butterfly Network shares are held by company insiders. Comparatively, 40.9% of Strata Skin Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Butterfly Network and Strata Skin Sciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Butterfly Network | -90.31% | -37.80% | -27.13% |
| Strata Skin Sciences | -35.64% | -476.73% | -33.49% |
Risk & Volatility
Analyst Recommendations
This is a summary of recent ratings and price targets for Butterfly Network and Strata Skin Sciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Butterfly Network | 1 | 1 | 3 | 0 | 2.40 |
| Strata Skin Sciences | 1 | 0 | 1 | 0 | 2.00 |
Butterfly Network currently has a consensus price target of $5.25, indicating a potential upside of 72.70%. Strata Skin Sciences has a consensus price target of $6.00, indicating a potential upside of 1,438.46%. Given Strata Skin Sciences’ higher possible upside, analysts clearly believe Strata Skin Sciences is more favorable than Butterfly Network.
Valuation and Earnings
This table compares Butterfly Network and Strata Skin Sciences”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Butterfly Network | $82.06 million | 9.36 | -$72.49 million | ($0.33) | -9.21 |
| Strata Skin Sciences | $33.56 million | 0.07 | -$10.09 million | ($2.67) | -0.15 |
Strata Skin Sciences has lower revenue, but higher earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Strata Skin Sciences, indicating that it is currently the more affordable of the two stocks.
Summary
Butterfly Network beats Strata Skin Sciences on 9 of the 14 factors compared between the two stocks.
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.
About Strata Skin Sciences
STRATA Skin Sciences, Inc., a medical technology company, develops, commercializes, and markets products for the treatment of dermatologic conditions in the United States, Europe, the Middle East, Asia, Australia, South Africa, and Central and South America. The company operates in two segments, Dermatology Recurring Procedures and Dermatology Procedures Equipment. The company products include XTRAC and Pharos excimer lasers, and VTRAC lamp systems for the treatment systems that are used for the treatment of psoriasis, vitiligo, and other skin conditions. It also offers TheraClear Acne Therapy System for the treatment of mild to moderate inflammatory, comedonal, and pustular acne. The company was formerly known as MELA Sciences, Inc and changed its name to STRATA Skin Sciences, Inc. in January 2016. STRATA Skin Sciences, Inc. was incorporated in 1989 and is based in Horsham, Pennsylvania.
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