Critical Analysis: Zhongchao (NASDAQ:ZCMD) & HeartSciences (NASDAQ:HSCS)

HeartSciences (NASDAQ:HSCS) and Zhongchao (NASDAQ:ZCMD) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Volatility and Risk

HeartSciences has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500. Comparatively, Zhongchao has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Insider & Institutional Ownership

17.2% of HeartSciences shares are owned by institutional investors. Comparatively, 1.7% of Zhongchao shares are owned by institutional investors. 1.8% of HeartSciences shares are owned by company insiders. Comparatively, 28.6% of Zhongchao shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares HeartSciences and Zhongchao’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartSciences	N/A	-383.38%	-145.28%
Zhongchao	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for HeartSciences and Zhongchao, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartSciences	1	0	2	0	2.33
Zhongchao	1	0	0	0	1.00

HeartSciences presently has a consensus target price of $10.50, suggesting a potential upside of 309.36%. Given HeartSciences’ stronger consensus rating and higher possible upside, equities analysts clearly believe HeartSciences is more favorable than Zhongchao.

Earnings & Valuation

This table compares HeartSciences and Zhongchao”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartSciences	N/A	N/A	-$8.77 million	($8.30)	-0.31
Zhongchao	$13.12 million	1.23	-$640,000.00	N/A	N/A

Zhongchao has higher revenue and earnings than HeartSciences.

About HeartSciences

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.

About Zhongchao

Zhongchao Inc. provides healthcare information, education, and training services in the People's Republic of China. The company offers online and onsite health information services, healthcare education programs, and healthcare training products, including clinical practice training, open classes of popular medical topics, interactive case studies, academic conference and workshops, continuing education courses, and articles and short videos with educational healthcare content. It also provides customized medical courses and medical training services; and patient management services through online platform under the Zhongxun brand. The company operates through its mdmooc.org online platform under the MDMOOC brand; and Sunshine Health Forums, a Wechat subscription account and mobile app. It serves enterprises, non-for-profit organizations, and medical journals, as well as healthcare professionals, nurses, doctors, and other healthcare workers. The company was founded in 2012 and is headquartered in Shanghai, China.