Financial Contrast: Edwards Lifesciences (NYSE:EW) vs. Butterfly Network (NYSE:BFLY)

Edwards Lifesciences (NYSE:EW) and Butterfly Network (NYSE:BFLY) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Institutional & Insider Ownership

79.5% of Edwards Lifesciences shares are owned by institutional investors. Comparatively, 37.9% of Butterfly Network shares are owned by institutional investors. 0.3% of Edwards Lifesciences shares are owned by company insiders. Comparatively, 22.0% of Butterfly Network shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Edwards Lifesciences has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Edwards Lifesciences and Butterfly Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edwards Lifesciences	0	7	18	1	2.77
Butterfly Network	1	1	5	1	2.75

Edwards Lifesciences presently has a consensus target price of $100.27, indicating a potential upside of 11.22%. Butterfly Network has a consensus target price of $8.75, indicating a potential upside of 29.25%. Given Butterfly Network’s higher possible upside, analysts plainly believe Butterfly Network is more favorable than Edwards Lifesciences.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edwards Lifesciences	15.43%	15.68%	12.05%
Butterfly Network	-66.74%	-33.99%	-22.96%

Earnings and Valuation

This table compares Edwards Lifesciences and Butterfly Network”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edwards Lifesciences	$6.07 billion	8.56	$1.07 billion	$1.74	51.81
Butterfly Network	$97.61 million	18.47	-$77.06 million	($0.29)	-23.34

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

Summary

Edwards Lifesciences beats Butterfly Network on 10 of the 14 factors compared between the two stocks.

About Edwards Lifesciences

Edwards Lifesciences Corporation provides products and technologies for structural heart disease and critical care monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of aortic heart valves under the Edwards SAPIEN family of valves system; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases under the PASCAL PRECISION and Cardioband names. The company also provides surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; INSPIRIS RESILLA aortic valve, which offers RESILIA tissue and VFit technology; KONECT RESILIA, a pre-assembled tissue valves conduit for complex combined procedures; and MITRIS RESILIA valve. In addition, it offers critical care solutions, including hemodynamic monitoring systems to measure a patient’s heart function and fluid status in surgical and intensive care settings under the FloTrac, Acumen IQ sensors, ClearSight, Acumen IQ cuffs, and ForeSight names; HemoSphere, a monitoring platform that displays physiological information; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

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.