Comparing SOPHiA GENETICS (NASDAQ:SOPH) & Health Catalyst (NASDAQ:HCAT)

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

Analyst Ratings

This is a breakdown of recent recommendations for SOPHiA GENETICS and Health Catalyst, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
Health Catalyst	1	8	4	0	2.23

SOPHiA GENETICS presently has a consensus target price of $7.50, indicating a potential upside of 50.00%. Health Catalyst has a consensus target price of $2.77, indicating a potential upside of 43.66%. Given SOPHiA GENETICS’s stronger consensus rating and higher possible upside, research analysts clearly believe SOPHiA GENETICS is more favorable than Health Catalyst.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. Comparatively, 85.0% of Health Catalyst shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by insiders. Comparatively, 2.6% of Health Catalyst shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

SOPHiA GENETICS has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-44.48%	-62.74%	-21.85%
Health Catalyst	-87.69%	-3.52%	-1.77%

Valuation and Earnings

This table compares SOPHiA GENETICS and Health Catalyst”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	4.43	-$79.00 million	($0.52)	-9.62
Health Catalyst	$311.14 million	0.46	-$177.97 million	($3.72)	-0.52

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

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.