Contrasting Azenta (NASDAQ:AZTA) and Butterfly Network (NYSE:BFLY)

Azenta (NASDAQ:AZTA) and Butterfly Network (NYSE:BFLY) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Volatility and Risk

Azenta has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.34, indicating that its share price is 134% more volatile than the S&P 500.

Insider & Institutional Ownership

99.1% of Azenta shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 10.6% of Azenta shares are held by insiders. Comparatively, 25.2% of Butterfly Network shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Azenta 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
Azenta	$593.82 million	2.71	-$59.50 million	($1.30)	-26.96
Butterfly Network	$82.06 million	9.45	-$72.49 million	($0.33)	-9.30

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Azenta and Butterfly Network, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Azenta	2	3	3	0	2.13
Butterfly Network	1	1	3	0	2.40

Azenta presently has a consensus price target of $38.60, suggesting a potential upside of 10.13%. Butterfly Network has a consensus price target of $3.00, suggesting a potential downside of 2.28%. Given Azenta’s higher probable upside, research analysts clearly believe Azenta is more favorable than Butterfly Network.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Azenta	-10.01%	1.40%	1.17%
Butterfly Network	-90.31%	-37.80%	-27.13%

Summary

Azenta beats Butterfly Network on 7 of the 13 factors compared between the two stocks.

About Azenta

Azenta, Inc. provides biological and chemical compound sample exploration and management solutions for the life sciences market in North America, Africa, China, the United Kingdom, rest of Europe, the Asia Pacific, and internationally. The company operates in two reportable segments, Life Sciences Products and Life Sciences Services. The Life Sciences Products segment offers automated cold storage solutions, consumables and instruments, controlled rate thawing devices, and temperature-controlled storage and transportation solutions. This segment also provides sample management solutions, such as consumable vials and tubes, polymerase chain reaction, plates, instruments for supporting workflows, and informatics. The Life Sciences Services segment provides genomic services, that includes gene sequencing and gene synthesis services; and sample repository solutions, such as on-site and off-site sample storage, cold chain logistics, sample transport and collection relocation, bio-processing solutions, disaster recovery and business continuity, and biospecimen procurement services, as well as project management and consulting services for genomic analysis and the management and care of biological samples used in pharmaceutical, biotech, healthcare, clinical, and academic research, and development sectors. It serves a range of life science customers, including pharmaceutical companies, biotechnology companies, biorepositories, and research institutes. The company was formerly known as Brooks Automation, Inc. and changed its name to Azenta, Inc. in December 2021. Azenta, Inc. was founded in 1978 and is headquartered in Burlington, Massachusetts.

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.