Financial Review: Haemonetics (NYSE:HAE) vs. Butterfly Network (NYSE:BFLY)

Haemonetics (NYSE:HAE) and Butterfly Network (NYSE:BFLY) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares Haemonetics and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Haemonetics	7.52%	27.42%	9.77%
Butterfly Network	-43.56%	-21.60%	-14.25%

Analyst Recommendations

This is a summary of recent recommendations for Haemonetics and Butterfly Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Haemonetics	0	3	7	1	2.82
Butterfly Network	1	1	5	1	2.75

Haemonetics presently has a consensus price target of $126.38, indicating a potential upside of 4.78%. Butterfly Network has a consensus price target of $8.75, indicating a potential upside of 27.46%. Given Butterfly Network’s higher probable upside, analysts plainly believe Butterfly Network is more favorable than Haemonetics.

Institutional and Insider Ownership

99.7% of Haemonetics shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 2.1% of Haemonetics shares are held by insiders. Comparatively, 22.0% of Butterfly Network shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Haemonetics has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500.

Valuation and Earnings

This table compares Haemonetics and Butterfly Network”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Haemonetics	$1.33 billion	4.12	$97.31 million	$2.23	54.09
Butterfly Network	$97.61 million	18.81	-$77.06 million	($0.21)	-32.69

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

Summary

Haemonetics beats Butterfly Network on 10 of the 14 factors compared between the two stocks.

About Haemonetics

Haemonetics Corporation is a global medical technology company focused on blood and plasma collection, processing and management. Its products and services are used by plasma collection organizations, blood centers and hospitals. The company provides automated plasma collection systems and related software and supplies, as well as technologies for collecting and processing blood components. Its hospital offerings include devices for surgical blood salvage and tools that help clinicians assess blood clotting and guide transfusion decisions.

About Butterfly Network

Butterfly Network develops portable ultrasound technology for healthcare professionals. Its handheld devices use the company’s semiconductor-based Ultrasound-on-Chip technology to produce ultrasound images and connect with compatible mobile devices, offering an alternative to larger, cart-based systems. The company’s products include the Butterfly iQ line of handheld ultrasound devices, along with software and cloud-based tools for viewing, managing and sharing medical images. Its offerings are designed for use across a range of clinical settings and applications.