Critical Analysis: Semler Scientific (NASDAQ:SMLR) vs. Heart Tronics (OTCMKTS:HRTT)

Semler Scientific (NASDAQ:SMLR) and Heart Tronics (OTCMKTS:HRTT) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Semler Scientific and Heart Tronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	25.62%	21.17%	19.40%
Heart Tronics	N/A	N/A	N/A

Insider & Institutional Ownership

49.4% of Semler Scientific shares are owned by institutional investors. 13.0% of Semler Scientific 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.

Valuation and Earnings

This table compares Semler Scientific and Heart Tronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semler Scientific	$61.74 million	3.14	$20.58 million	$2.79	9.83
Heart Tronics	N/A	N/A	N/A	N/A	N/A

Semler Scientific has higher revenue and earnings than Heart Tronics.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Semler Scientific and Heart Tronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	0	0	0	1	4.00
Heart Tronics	0	0	0	0	N/A

Risk and Volatility

Semler Scientific has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Heart Tronics has a beta of 1047.74, suggesting that its stock price is 104,674% more volatile than the S&P 500.

Summary

Semler Scientific beats Heart Tronics on 7 of the 8 factors compared between the two stocks.

About Semler Scientific

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company’s products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient’s vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company’s products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.

About Heart Tronics

Heart Tronics, Inc., a medical device company, engages in the research, development, and marketing of medical devices in the United States. Its medical devices are used to monitor and measure physiological signals in order to detect diseases that impact an individual's health. The company offers Fidelity 100 Monitor System, an integrated system in which its component Model 100 Patient Module collects, processes, and amplifies electrocardiogram (ECG) signals from that patient through a set of 10 electrodes that are wirelessly transmitted to the laptop computer. Its products in the development stage include Fidelity 350 Holter Monitor, an ambulatory Holter monitor that collects ECG data of arrhythmia and transient heart disease, while the patient carries out daily activities away from the physician's office or hospital. The company's products in the development stage also consist of Fidelity 200 Event Recording System/Heart Tempo Card, a non-prescription heart monitoring device, which is used as an early-detection device by patients who desire to monitor their condition. Its products also include Cardiac Vest, a lightweight, close-fitting vest or undergarment made of stretchable material in which the electrodes are stitched into the fabric; and Fidelity 400 Intracardiac Monitor that applies its proprietary physiological signal acquisition and amplification technology to read intracardiac signals procured from intracardiac catheter. The company was formerly known as Signalife, Inc. and changed its name to Heart Tronics, Inc. in November 2008. Heart Tronics, Inc. was incorporated in 1987 is headquartered in Studio City, California.