Reviewing Butterfly Network (NYSE:BFLY) & Zynex (NASDAQ:ZYXI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zynex	-68.35%	-804.30%	-36.67%
Butterfly Network	N/A	N/A	N/A

Valuation & Earnings

This table compares Zynex and Butterfly Network”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05
Butterfly Network	$112.14 million	17.51	-$77.22 million	($0.29)	-25.43

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

Risk and Volatility

Zynex has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Institutional & Insider Ownership

29.7% of Zynex shares are owned by institutional investors. Comparatively, 37.8% of Butterfly Network shares are owned by institutional investors. 49.3% of Zynex shares are owned by insiders. Comparatively, 22.0% of Butterfly Network shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Zynex and Butterfly Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zynex	1	0	0	0	1.00
Butterfly Network	1	1	5	1	2.75

Butterfly Network has a consensus price target of $8.75, suggesting a potential upside of 18.64%. Given Butterfly Network’s stronger consensus rating and higher possible upside, analysts clearly believe Butterfly Network is more favorable than Zynex.

Summary

Butterfly Network beats Zynex on 12 of the 15 factors compared between the two stocks.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

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.