electroCore (NASDAQ:ECOR – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Profitability
This table compares electroCore and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| electroCore | -39.96% | N/A | -81.35% |
| iRhythm Technologies | -1.69% | 10.11% | 1.53% |
Insider and Institutional Ownership
26.7% of electroCore shares are held by institutional investors. 7.8% of electroCore shares are held by insiders. Comparatively, 1.0% of iRhythm Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| electroCore | $32.03 million | 2.36 | -$13.97 million | ($1.66) | -5.05 |
| iRhythm Technologies | $747.14 million | 4.75 | -$44.55 million | ($0.43) | -250.49 |
electroCore has higher earnings, but lower revenue than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than electroCore, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
electroCore has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for electroCore and iRhythm Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| electroCore | 1 | 1 | 1 | 0 | 2.00 |
| iRhythm Technologies | 1 | 1 | 12 | 2 | 2.94 |
electroCore currently has a consensus price target of $18.00, suggesting a potential upside of 114.54%. iRhythm Technologies has a consensus price target of $178.79, suggesting a potential upside of 65.99%. Given electroCore’s higher possible upside, research analysts clearly believe electroCore is more favorable than iRhythm Technologies.
Summary
iRhythm Technologies beats electroCore on 11 of the 15 factors compared between the two stocks.
About electroCore
electroCore, Inc., a commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally. The company is developing gammaCore, a prescription only handheld device intended for regular or intermittent use for the acute treatment of pain associated with migraine and episodic cluster headache, as well as for the treatment of hemicrania continua and paroxysmal hemicrania. It also develops Truvaga for the support of general health and wellbeing; and TAC-STIM for human performance. In addition, the company offers gammacore Sapphire, a portable, reusable, rechargeable, and reloadable prescription medical device for various primary headache conditions. electroCore, Inc. was incorporated in 2005 and is headquartered in Rockaway, New Jersey.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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