Avitar (OTCMKTS:AVTI) and Heart Test Laboratories (NASDAQ:HSCS) Critical Survey

Heart Test Laboratories (NASDAQ:HSCS) and Avitar (OTCMKTS:AVTI) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Volatility & Risk

Heart Test Laboratories has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500. Comparatively, Avitar has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Heart Test Laboratories and Avitar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heart Test Laboratories	N/A	-144.12%	-94.48%
Avitar	N/A	N/A	N/A

Insider & Institutional Ownership

17.2% of Heart Test Laboratories shares are owned by institutional investors. 1.8% of Heart Test Laboratories shares are owned by insiders. Comparatively, 7.4% of Avitar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Heart Test Laboratories and Avitar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heart Test Laboratories	$14,700.00	226.67	-$6.61 million	($7.91)	-0.43
Avitar	N/A	N/A	N/A	N/A	N/A

Avitar has lower revenue, but higher earnings than Heart Test Laboratories.

Analyst Ratings

This is a breakdown of recent ratings for Heart Test Laboratories and Avitar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heart Test Laboratories	0	0	2	0	3.00
Avitar	0	0	0	0	0.00

Heart Test Laboratories presently has a consensus price target of $13.50, suggesting a potential upside of 297.06%. Given Heart Test Laboratories’ stronger consensus rating and higher possible upside, research analysts plainly believe Heart Test Laboratories is more favorable than Avitar.

Summary

Heart Test Laboratories beats Avitar on 6 of the 9 factors compared between the two stocks.

About Heart Test Laboratories

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.

About Avitar

Avitar, Inc. is a holding company which through its subsidiaries designs, develops, manufactures, and markets diagnostic test products and proprietary hydrophilic polyurethane foam disposables for medical, diagnostics, dental, and consumer applications in the United States. It offers ORALscreen 4 and ORALscreen DRUGOMETER, the oral fluid-based onsite assay systems, for detecting drugs of abuse, such as opiates, including heroin, morphine, codeine, and synthetic opiates comprising oxycocone-oxycontin, percoset, and hydrocodone-vicodin; cocaine such as crack; marijuana; and methamphetamines, including meth and ecstasy. The company also provides foam disposable products including medical-grade hydrophilic polyurethane foam disposables such as wound dressings comprising Hydrasorb, a wound dressing product for exudating wounds; and various custom foam products comprising a sinus dressing and a device used by astronauts for relieving ear pressure while in a pressurized space suit. In addition, it develops specialty wound dressings for the cardiac catheter lab market, as well as the Illizarov Dressing used for dressing external bone fixators in orthopedic procedures. The company markets its products and services to employers, diagnostic test distributors, medical supply companies, governmental agencies, schools, and corporations through direct sales force and strategic partners, as well as through a network of distributors. Avitar, Inc. was founded in 1986 and is based in Canton, Massachusetts with Additional office in Calgary, Canada.