DarioHealth (NASDAQ:DRIO) vs. Phreesia (NYSE:PHR) Head to Head Analysis

Phreesia (NYSE:PHR) and DarioHealth (NASDAQ:DRIO) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Phreesia and DarioHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	9	9	0	2.42
DarioHealth	1	1	2	0	2.25

Phreesia currently has a consensus target price of $16.65, indicating a potential upside of 37.58%. DarioHealth has a consensus target price of $10.00, indicating a potential upside of 33.51%. Given Phreesia’s stronger consensus rating and higher possible upside, equities analysts plainly believe Phreesia is more favorable than DarioHealth.

Risk & Volatility

Phreesia has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Phreesia and DarioHealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$480.59 million	1.56	$2.31 million	$0.15	80.67
DarioHealth	$21.00 million	3.50	-$41.71 million	($6.13)	-1.22

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

Profitability

This table compares Phreesia and DarioHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phreesia	1.85%	5.13%	3.12%
DarioHealth	-169.87%	-54.81%	-33.36%

Institutional and Insider Ownership

92.1% of Phreesia shares are owned by institutional investors. Comparatively, 33.4% of DarioHealth shares are owned by institutional investors. 5.2% of Phreesia shares are owned by company insiders. Comparatively, 3.5% of DarioHealth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Phreesia beats DarioHealth on 12 of the 14 factors compared between the two stocks.

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.