Reviewing DarioHealth (NASDAQ:DRIO) and Healthcare Triangle (NASDAQ:HCTI)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Healthcare Triangle and DarioHealth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Triangle	1	0	0	0	1.00
DarioHealth	1	1	2	0	2.25

DarioHealth has a consensus target price of $10.00, indicating a potential upside of 36.99%. Given DarioHealth’s stronger consensus rating and higher probable upside, analysts plainly believe DarioHealth is more favorable than Healthcare Triangle.

Institutional & Insider Ownership

0.3% of Healthcare Triangle shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 0.1% of Healthcare Triangle shares are held by insiders. Comparatively, 3.5% of DarioHealth shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Healthcare Triangle	-66.85%	-125.45%	-36.06%
DarioHealth	-169.87%	-54.81%	-33.36%

Volatility & Risk

Healthcare Triangle has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Earnings & Valuation

This table compares Healthcare Triangle and DarioHealth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Triangle	$13.89 million	0.88	-$9.48 million	($33.52)	-0.02
DarioHealth	$22.36 million	3.20	-$41.71 million	($6.13)	-1.19

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

Summary

DarioHealth beats Healthcare Triangle on 11 of the 14 factors compared between the two stocks.

About Healthcare Triangle

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.

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.