Reviewing Spectral AI (NASDAQ:MDAI) and Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and Spectral AI (NASDAQ:MDAI) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares Hyperfine and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-210.75%	-97.88%	-61.81%
Spectral AI	-69.27%	N/A	-78.56%

Volatility & Risk

Hyperfine has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Spectral AI has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Hyperfine and Spectral AI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	1	1	3	0	2.40
Spectral AI	1	0	1	1	2.67

Hyperfine currently has a consensus price target of $2.03, suggesting a potential upside of 116.29%. Spectral AI has a consensus price target of $4.00, suggesting a potential upside of 143.90%. Given Spectral AI’s stronger consensus rating and higher probable upside, analysts clearly believe Spectral AI is more favorable than Hyperfine.

Institutional & Insider Ownership

15.0% of Hyperfine shares are held by institutional investors. Comparatively, 67.1% of Spectral AI shares are held by institutional investors. 26.3% of Hyperfine shares are held by company insiders. Comparatively, 13.7% of Spectral AI 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.

Earnings & Valuation

This table compares Hyperfine and Spectral AI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$11.40 million	8.75	-$35.57 million	($0.38)	-2.47
Spectral AI	$19.65 million	2.69	-$7.57 million	($0.35)	-4.69

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

Summary

Spectral AI beats Hyperfine on 9 of the 15 factors compared between the two stocks.

About Hyperfine

Hyperfine, Inc., a medical device company, provides magnetic resonance imaging (MRI) products in the United States. The company offers Swoop Portable MR imaging system, which offers portable brain neuroimaging; and support and technical assistance services. It serves ICU, comprehensive, and primary stroke accredited facilities through direct sales and distributors. Hyperfine, Inc. was founded in 2014 and is based in Guilford, Connecticut.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.