Analyzing DarioHealth (NASDAQ:DRIO) and PROCEPT BioRobotics (NASDAQ:PRCT)

PROCEPT BioRobotics (NASDAQ:PRCT) and DarioHealth (NASDAQ:DRIO) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility & Risk

PROCEPT BioRobotics has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROCEPT BioRobotics	$136.19 million	27.95	-$105.90 million	($1.95)	-37.41
DarioHealth	$20.35 million	1.10	-$59.43 million	($0.94)	-0.70

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROCEPT BioRobotics	0	1	6	0	2.86
DarioHealth	0	1	1	0	2.50

PROCEPT BioRobotics presently has a consensus price target of $97.86, suggesting a potential upside of 34.14%. DarioHealth has a consensus price target of $2.50, suggesting a potential upside of 281.56%. Given DarioHealth’s higher possible upside, analysts clearly believe DarioHealth is more favorable than PROCEPT BioRobotics.

Institutional and Insider Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 17.4% of PROCEPT BioRobotics shares are held by company insiders. Comparatively, 16.5% of DarioHealth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PROCEPT BioRobotics	-50.07%	-38.57%	-26.06%
DarioHealth	-205.62%	-72.16%	-40.74%

Summary

PROCEPT BioRobotics beats DarioHealth on 9 of the 14 factors compared between the two stocks.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.

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.