Analyzing Sonendo (NYSE:SONX) & Hyperfine (NASDAQ:HYPR)

Sonendo (NYSE:SONX) and Hyperfine (NASDAQ:HYPR) are both small-cap healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Sonendo and Hyperfine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonendo	0	0	0	0	0.00
Hyperfine	1	1	3	0	2.40

Hyperfine has a consensus target price of $2.03, indicating a potential upside of 128.21%. Given Hyperfine’s stronger consensus rating and higher probable upside, analysts clearly believe Hyperfine is more favorable than Sonendo.

Insider & Institutional Ownership

28.7% of Sonendo shares are held by institutional investors. Comparatively, 15.0% of Hyperfine shares are held by institutional investors. 7.9% of Sonendo shares are held by insiders. Comparatively, 26.3% of Hyperfine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sonendo and Hyperfine”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonendo	$44.40 million	0.06	-$60.92 million	($71.12)	-0.01
Hyperfine	$11.40 million	8.29	-$35.57 million	($0.38)	-2.34

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

Risk & Volatility

Sonendo has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Hyperfine has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Sonendo and Hyperfine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonendo	-92.74%	-184.01%	-68.60%
Hyperfine	-210.75%	-97.88%	-61.81%

Summary

Hyperfine beats Sonendo on 9 of the 14 factors compared between the two stocks.

About Sonendo

Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment, a technology platform designed for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of ethylenediaminetetraacetic acid EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. The company was incorporated in 2006 and is headquartered in Laguna Hills, California.

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.