Certara (NASDAQ:CERT – Get Free Report) and DarioHealth (NASDAQ:DRIO – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Analyst Ratings
This is a summary of current ratings for Certara and DarioHealth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Certara | 1 | 6 | 4 | 1 | 2.42 |
| DarioHealth | 1 | 1 | 3 | 0 | 2.40 |
Certara currently has a consensus price target of $9.73, indicating a potential downside of 21.46%. DarioHealth has a consensus price target of $9.00, indicating a potential upside of 215.68%. Given DarioHealth’s higher probable upside, analysts clearly believe DarioHealth is more favorable than Certara.
Profitability
This table compares Certara and DarioHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Certara | -16.75% | 3.86% | 2.65% |
| DarioHealth | -169.87% | -54.81% | -33.36% |
Institutional and Insider Ownership
74.0% of Certara shares are owned by institutional investors. Comparatively, 33.4% of DarioHealth shares are owned by institutional investors. 1.1% of Certara shares are owned by insiders. Comparatively, 3.5% of DarioHealth shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Certara and DarioHealth”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Certara | $421.75 million | 4.48 | -$1.60 million | ($0.45) | -27.52 |
| DarioHealth | $22.36 million | 1.25 | -$41.71 million | ($6.13) | -0.47 |
Certara has higher revenue and earnings than DarioHealth. Certara is trading at a lower price-to-earnings ratio than DarioHealth, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Certara has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Summary
Certara beats DarioHealth on 12 of the 15 factors compared between the two stocks.
About Certara
Certara, Inc., together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics. The company provides Simcyp Simulator, a mechanistic biosimulation platform mechanistic biosimulation investigational new drug and translational stages; Simcyp Biopharmaceutics, used to identify and refine drug formulations; and Simcyp Secondary Intelligence which integrates toxicology with quantitative analysis of networks of molecular and functional biological changes to identify drug toxicity and adverse drug reactions. In addition, it offers Phoenix WinNonlin, a platform for non-compartmental analysis, pharmacokinetic/pharmacodynamic, and toxicokinetic; phoenix hosted, that provides a secured and validated certara amazon web services workspace; Phoenix NLME, a population modeling and simulation software for nonlinear mixed effects models; and pirana modeling workbench. Further, the company provides pinnacle 21, a cloud-based platform for clinical data automation, standardization, and validation; Pinnacle 21 Data Exchange, used to define data standards and specifications; and Metadata Repository, to enable study design using controlled and standardized data. It serves life sciences companies, biopharmaceutical companies, research organizations, academic institutions, and global regulators, as well as animal health, crop science, bio science, medical devices, and public sector industries. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.
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.
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