Head to Head Survey: Hyperfine (NASDAQ:HYPR) versus Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and Hyperfine (NASDAQ:HYPR) 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, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-69.27%	N/A	-78.56%
Hyperfine	-210.75%	-97.88%	-61.81%

Valuation & Earnings

This table compares Spectral AI and Hyperfine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$15.39 million	3.20	-$7.57 million	($0.35)	-4.37
Hyperfine	$11.40 million	7.44	-$35.57 million	($0.38)	-2.11

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

Volatility and Risk

Spectral AI has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Hyperfine has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

67.1% of Spectral AI shares are owned by institutional investors. Comparatively, 15.0% of Hyperfine shares are owned by institutional investors. 13.7% of Spectral AI shares are owned by insiders. Comparatively, 26.3% of Hyperfine shares are owned 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Spectral AI and Hyperfine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	1	2.67
Hyperfine	1	1	3	0	2.40

Spectral AI presently has a consensus target price of $4.00, suggesting a potential upside of 161.44%. Hyperfine has a consensus target price of $2.03, suggesting a potential upside of 154.13%. Given Spectral AI’s stronger consensus rating and higher probable upside, analysts clearly believe Spectral AI is more favorable than Hyperfine.

Summary

Spectral AI beats Hyperfine on 9 of the 15 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

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.