Reviewing SOPHiA GENETICS (NASDAQ:SOPH) and Zhongchao (NASDAQ:ZCMD)

SOPHiA GENETICS (NASDAQ:SOPH) and Zhongchao (NASDAQ:ZCMD) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 1.7% of Zhongchao shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 28.6% of Zhongchao shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

SOPHiA GENETICS has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Zhongchao has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for SOPHiA GENETICS and Zhongchao, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	2	0	2.33
Zhongchao	1	0	0	0	1.00

SOPHiA GENETICS presently has a consensus price target of $7.50, indicating a potential upside of 37.36%. Given SOPHiA GENETICS’s stronger consensus rating and higher probable upside, research analysts plainly believe SOPHiA GENETICS is more favorable than Zhongchao.

Profitability

This table compares SOPHiA GENETICS and Zhongchao’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-44.48%	-62.74%	-21.85%
Zhongchao	N/A	N/A	N/A

Earnings & Valuation

This table compares SOPHiA GENETICS and Zhongchao”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	5.07	-$79.00 million	($0.52)	-10.50
Zhongchao	$11.38 million	0.01	-$6.31 million	N/A	N/A

Zhongchao has lower revenue, but higher earnings than SOPHiA GENETICS.

Summary

SOPHiA GENETICS beats Zhongchao on 7 of the 12 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 Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.