Mesoblast (NASDAQ:MESO) versus SOPHiA GENETICS (NASDAQ:SOPH) Critical Analysis

Mesoblast (NASDAQ:MESO) and SOPHiA GENETICS (NASDAQ:SOPH) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mesoblast and SOPHiA GENETICS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mesoblast	0	1	2	1	3.00
SOPHiA GENETICS	0	1	3	0	2.75

Mesoblast currently has a consensus price target of $18.00, suggesting a potential upside of 52.28%. SOPHiA GENETICS has a consensus price target of $6.80, suggesting a potential upside of 106.69%. Given SOPHiA GENETICS’s higher probable upside, analysts plainly believe SOPHiA GENETICS is more favorable than Mesoblast.

Volatility & Risk

Mesoblast has a beta of 3.48, indicating that its share price is 248% more volatile than the S&P 500. Comparatively, SOPHiA GENETICS has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mesoblast and SOPHiA GENETICS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mesoblast	$5.67 million	264.86	-$87.96 million	N/A	N/A
SOPHiA GENETICS	$65.17 million	3.37	-$78.98 million	($0.95)	-3.46

SOPHiA GENETICS has higher revenue and earnings than Mesoblast.

Institutional & Insider Ownership

1.4% of Mesoblast shares are owned by institutional investors. Comparatively, 31.6% of SOPHiA GENETICS shares are owned by institutional investors. 18.8% of Mesoblast shares are owned by insiders. Comparatively, 4.9% of SOPHiA GENETICS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Mesoblast and SOPHiA GENETICS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mesoblast	N/A	N/A	N/A
SOPHiA GENETICS	-110.71%	-55.06%	-38.33%

Summary

Mesoblast beats SOPHiA GENETICS on 8 of the 13 factors compared between the two stocks.

About Mesoblast

Mesoblast Limited engages in the development of regenerative medicine products in Australia, the United States, Singapore, and Switzerland. The company offers products in the areas of cardiovascular, spine orthopedic disorder, oncology, hematology, and immune-mediated and inflammatory diseases. Its proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells. The company offers Remestemcel-L that is in Phase III clinical trials for the treatment of systemic inflammatory diseases, including steroid refractory acute graft versus host disease, acute respiratory distress syndrome, and biologic refractory inflammatory bowel disease; and Remestemcel-L, which is in Phase III clinical trials to treat chronic heart failure and chronic low back pain due to degenerative disc disease. It is also developing MPC-300-IV to treat biologic refractory rheumatoid arthritis diabetic nephropathy; and MPC-25-IC for the treatment or prevention of acute myocardial infarction. It has strategic partnerships with Tasly Pharmaceutical Group to offer MPC-150-IM for heart failure and MPC-25-IC for heart attacks in China; JCR Pharmaceuticals Co. Ltd. to treat wound healing in patients with epidermolysis bullosa; and Grünenthal to develops and commercializes cell therapy for the treatment of chronic low back pain. The company was incorporated in 2004 and is headquartered in Melbourne, Australia.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.