Critical Survey: 908 Devices (NASDAQ:MASS) and Hyperfine (NASDAQ:HYPR)

Hyperfine (NASDAQ:HYPR) and 908 Devices (NASDAQ:MASS) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

15.0% of Hyperfine shares are held by institutional investors. Comparatively, 88.1% of 908 Devices shares are held by institutional investors. 26.3% of Hyperfine shares are held by insiders. Comparatively, 28.2% of 908 Devices shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hyperfine and 908 Devices, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyperfine	1	2	3	0	2.33
908 Devices	1	0	1	0	2.00

Hyperfine currently has a consensus target price of $1.78, suggesting a potential upside of 31.13%. 908 Devices has a consensus target price of $12.00, suggesting a potential upside of 45.10%. Given 908 Devices’ higher probable upside, analysts plainly believe 908 Devices is more favorable than Hyperfine.

Volatility and Risk

Hyperfine has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, 908 Devices has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hyperfine and 908 Devices”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyperfine	$11.40 million	11.84	-$35.57 million	($0.41)	-3.32
908 Devices	$56.20 million	5.56	$19.49 million	($1.00)	-8.27

908 Devices has higher revenue and earnings than Hyperfine. 908 Devices is trading at a lower price-to-earnings ratio than Hyperfine, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hyperfine and 908 Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyperfine	-226.88%	-98.83%	-67.09%
908 Devices	-62.40%	-14.03%	-10.40%

Summary

908 Devices beats Hyperfine on 8 of the 14 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 908 Devices

908 Devices Inc., a commercial-stage technology company, provides various purpose-built handheld and desktop mass spectrometry devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, pharma/biopharma, forensics, and adjacent markets. The company's products include MX908, a handheld, battery-powered, and Mass Spec device that is designed for rapid analysis of solid, liquid, vapor, and aerosol materials of unknown identity; Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses; and Maverick, an optical in-line analyzer that offers real-time monitoring and control of multiple bioprocess parameters, including glucose, lactate, and total biomass in mammalian cell cultures, as well as provides process fingerprint data to support large-scale efforts in predictive bioprocess modeling. Its products also comprise Maven and Trace C2, an online device for bioprocess monitoring and control; and ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis. The company operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, and rest of the Americas. 908 Devices Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.