DarioHealth (NASDAQ:DRIO) versus Phreesia (NYSE:PHR) Critical Analysis

Phreesia (NYSE:PHRGet Free Report) and DarioHealth (NASDAQ:DRIOGet Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Phreesia and DarioHealth”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Phreesia $480.59 million 1.56 $2.31 million $0.15 80.67
DarioHealth $21.00 million 3.50 -$41.71 million ($6.13) -1.22

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Phreesia and DarioHealth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Phreesia 1 9 9 0 2.42
DarioHealth 1 1 2 0 2.25

Phreesia currently has a consensus price target of $16.65, suggesting a potential upside of 37.58%. DarioHealth has a consensus price target of $10.00, suggesting a potential upside of 33.51%. Given Phreesia’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Phreesia is more favorable than DarioHealth.

Profitability

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

Net Margins Return on Equity Return on Assets
Phreesia 1.85% 5.13% 3.12%
DarioHealth -169.87% -54.81% -33.36%

Institutional and Insider Ownership

92.1% of Phreesia shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 5.2% of Phreesia shares are held by insiders. Comparatively, 3.5% of DarioHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Phreesia has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

Phreesia beats DarioHealth on 12 of the 14 factors compared between the two stocks.

About Phreesia

(Get Free Report)

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About DarioHealth

(Get Free Report)

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.

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