Butterfly Network (NYSE:BFLY – Get Free Report) and Rockwell Medical (NASDAQ:RMTI – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Risk and Volatility
Butterfly Network has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.
Institutional & Insider Ownership
37.9% of Butterfly Network shares are held by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are held by institutional investors. 22.0% of Butterfly Network shares are held by company insiders. Comparatively, 4.6% of Rockwell Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Butterfly Network | $97.61 million | 20.00 | -$77.06 million | ($0.29) | -25.28 |
| Rockwell Medical | $69.26 million | 0.46 | -$5.31 million | ($1.34) | -5.96 |
Rockwell Medical has lower revenue, but higher earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Rockwell Medical, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Butterfly Network and Rockwell Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Butterfly Network | -66.74% | -33.99% | -22.96% |
| Rockwell Medical | -7.33% | -14.03% | -8.90% |
Analyst Recommendations
This is a breakdown of recent ratings for Butterfly Network and Rockwell Medical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Butterfly Network | 1 | 1 | 3 | 0 | 2.40 |
| Rockwell Medical | 1 | 0 | 1 | 0 | 2.00 |
Butterfly Network currently has a consensus target price of $5.56, indicating a potential downside of 24.11%. Rockwell Medical has a consensus target price of $20.00, indicating a potential upside of 150.31%. Given Rockwell Medical’s higher possible upside, analysts plainly believe Rockwell Medical is more favorable than Butterfly Network.
Summary
Butterfly Network beats Rockwell Medical on 8 of the 14 factors compared between the two stocks.
About Butterfly Network
Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.
About Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
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