Critical Survey: SOPHiA GENETICS (NASDAQ:SOPH) vs. iRhythm Technologies (NASDAQ:IRTC)

SOPHiA GENETICS (NASDAQ:SOPH) and iRhythm Technologies (NASDAQ:IRTC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Risk & Volatility

SOPHiA GENETICS has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Earnings and Valuation

This table compares SOPHiA GENETICS and iRhythm Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$77.27 million	4.51	-$79.00 million	($0.51)	-9.98
iRhythm Technologies	$747.14 million	5.11	-$44.55 million	($1.40)	-84.44

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

Profitability

This table compares SOPHiA GENETICS and iRhythm Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-44.22%	-50.60%	-21.00%
iRhythm Technologies	-5.96%	-28.15%	-3.35%

Analyst Recommendations

This is a breakdown of current ratings for SOPHiA GENETICS and iRhythm Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
iRhythm Technologies	1	1	11	2	2.93

SOPHiA GENETICS presently has a consensus target price of $7.00, indicating a potential upside of 37.52%. iRhythm Technologies has a consensus target price of $209.46, indicating a potential upside of 77.18%. Given iRhythm Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe iRhythm Technologies is more favorable than SOPHiA GENETICS.

Institutional & Insider Ownership

31.6% of SOPHiA GENETICS shares are held by institutional investors. 4.9% of SOPHiA GENETICS shares are held by insiders. Comparatively, 1.1% of iRhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

iRhythm Technologies beats SOPHiA GENETICS on 11 of the 15 factors compared between the two stocks.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

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.