Analyzing SOPHiA GENETICS (NASDAQ:SOPH) & Enovis (NYSE:ENOV)

SOPHiA GENETICS (NASDAQ:SOPH) and Enovis (NYSE:ENOV) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for SOPHiA GENETICS and Enovis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	1	0	2.00
Enovis	1	0	6	0	2.71

SOPHiA GENETICS presently has a consensus target price of $8.00, indicating a potential upside of 90.93%. Enovis has a consensus target price of $51.00, indicating a potential upside of 57.36%. Given SOPHiA GENETICS’s higher possible upside, equities analysts clearly believe SOPHiA GENETICS is more favorable than Enovis.

Profitability

This table compares SOPHiA GENETICS and Enovis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-40.99%	-30.69%	-17.39%
Enovis	-37.80%	6.78%	3.73%

Insider and Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 98.5% of Enovis shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by company insiders. Comparatively, 2.7% of Enovis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

SOPHiA GENETICS has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Enovis has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.

Earnings & Valuation

This table compares SOPHiA GENETICS and Enovis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$69.69 million	4.06	-$62.49 million	($0.44)	-9.52
Enovis	$2.11 billion	0.88	-$825.49 million	($14.25)	-2.27

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

Summary

Enovis beats SOPHiA GENETICS on 9 of the 14 factors compared between the two stocks.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

About Enovis

Enovis Corporation operates as a medical technology company focus on developing clinically differentiated solutions worldwide. It also manufactures and distributes medical devices which are used for reconstructive surgery, rehabilitation, pain management, and physical therapy. The company operates through Prevention and Recovery, and Reconstructive segments. Its Prevention and Recovery segment offers orthopedic solutions and recovery sciences including rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators management, and physical therapy products which are used by orthopedic specialists, surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals. The company's Reconstructive segment operates surgical implant business, which includes a suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger, as well as surgical productivity tools. The company distributes its products through independent distributors and directly under the ESAB and DJO brands. Enovis Corporation was formerly known as Colfax Corporation. The company was founded in 1995 and is headquartered in Wilmington, Delaware.