Heart Test Laboratories (NASDAQ:HSCS) vs. Eargo (NASDAQ:EAR) Critical Contrast

Heart Test Laboratories (NASDAQ:HSCS – Get Rating) and Eargo (NASDAQ:EAR – Get Rating) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Heart Test Laboratories and Eargo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heart Test Laboratories	0	0	3	0	3.00
Eargo	0	0	0	0	N/A

Heart Test Laboratories presently has a consensus target price of $4.77, suggesting a potential upside of 329.43%. Given Heart Test Laboratories’ higher possible upside, research analysts clearly believe Heart Test Laboratories is more favorable than Eargo.

Profitability

This table compares Heart Test Laboratories and Eargo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heart Test Laboratories	N/A	N/A	N/A
Eargo	-462.95%	-722.21%	-110.02%

Valuation and Earnings

This table compares Heart Test Laboratories and Eargo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heart Test Laboratories	$10,000.00	911.31	-$4.83 million	N/A	N/A
Eargo	$32.12 million	0.25	-$157.75 million	N/A	N/A

Heart Test Laboratories has higher earnings, but lower revenue than Eargo.

Institutional and Insider Ownership

0.8% of Heart Test Laboratories shares are owned by institutional investors. 14.6% of Heart Test Laboratories shares are owned by company insiders. Comparatively, 9.2% of Eargo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Heart Test Laboratories beats Eargo on 9 of the 10 factors compared between the two stocks.

About Heart Test Laboratories

(Get Rating)

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 12-lead resting 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 Eargo

(Get Rating)

Eargo, Inc., a medical device company, engages in enhancing the quality of life of people with hearing loss in the United States. The company markets and sells hearing aids. It sells its products direct-to-consumer and through omni-channel. The company was formerly known as Aria Innovations, Inc. and changed its name to Eargo, Inc. in November 2014. Eargo, Inc. was incorporated in 2010 and is headquartered in San Jose, California.