Analyzing DarioHealth (NASDAQ:DRIO) & Phreesia (NYSE:PHR)

DarioHealth (NASDAQ:DRIO) and Phreesia (NYSE:PHR) are both small-cap healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

Valuation and Earnings

This table compares DarioHealth and Phreesia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DarioHealth	$22.36 million	3.08	-$41.71 million	($6.13)	-1.15
Phreesia	$495.59 million	1.44	$2.31 million	$0.15	77.20

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

Profitability

This table compares DarioHealth and Phreesia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DarioHealth	-169.87%	-54.81%	-33.36%
Phreesia	1.85%	5.13%	3.12%

Institutional & Insider Ownership

33.4% of DarioHealth shares are held by institutional investors. Comparatively, 92.1% of Phreesia shares are held by institutional investors. 3.5% of DarioHealth shares are held by company insiders. Comparatively, 5.2% of Phreesia shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

DarioHealth has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Phreesia has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DarioHealth and Phreesia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DarioHealth	1	1	2	0	2.25
Phreesia	1	9	9	0	2.42

DarioHealth presently has a consensus price target of $10.00, suggesting a potential upside of 42.25%. Phreesia has a consensus price target of $16.65, suggesting a potential upside of 43.76%. Given Phreesia’s stronger consensus rating and higher possible upside, analysts clearly believe Phreesia is more favorable than DarioHealth.

Summary

Phreesia beats DarioHealth on 12 of the 14 factors compared between the two stocks.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.