iRhythm Technologies (NASDAQ:IRTC – Get Free Report) and HeartSciences (NASDAQ:HSCS – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
17.2% of HeartSciences shares are held by institutional investors. 1.0% of iRhythm Technologies shares are held by insiders. Comparatively, 4.9% of HeartSciences shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for iRhythm Technologies and HeartSciences, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iRhythm Technologies | 1 | 1 | 11 | 2 | 2.93 |
| HeartSciences | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares iRhythm Technologies and HeartSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iRhythm Technologies | -3.53% | -10.26% | -1.39% |
| HeartSciences | N/A | -333.50% | -140.18% |
Valuation & Earnings
This table compares iRhythm Technologies and HeartSciences”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iRhythm Technologies | $747.14 million | 5.04 | -$44.55 million | ($0.86) | -133.33 |
| HeartSciences | N/A | N/A | -$8.77 million | ($4.94) | -0.38 |
HeartSciences has lower revenue, but higher earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than HeartSciences, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
iRhythm Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, HeartSciences has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
About HeartSciences
Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.
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