Avitar (OTCMKTS:AVTI) & Heart Test Laboratories (NASDAQ:HSCS) Critical Contrast

Avitar (OTCMKTS:AVTI) and Heart Test Laboratories (NASDAQ:HSCS) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Avitar has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Heart Test Laboratories has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Avitar and Heart Test Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avitar	0	0	0	0	0.00
Heart Test Laboratories	0	0	2	0	3.00

Heart Test Laboratories has a consensus target price of $13.50, indicating a potential upside of 268.85%. Given Heart Test Laboratories’ stronger consensus rating and higher possible upside, analysts plainly believe Heart Test Laboratories is more favorable than Avitar.

Institutional & Insider Ownership

17.2% of Heart Test Laboratories shares are held by institutional investors. 7.4% of Avitar shares are held by insiders. Comparatively, 1.8% of Heart Test Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avitar	N/A	N/A	N/A
Heart Test Laboratories	N/A	-144.12%	-94.48%

Earnings & Valuation

This table compares Avitar and Heart Test Laboratories”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avitar	N/A	N/A	N/A	N/A	N/A
Heart Test Laboratories	$14,700.00	244.00	-$6.61 million	($7.91)	-0.46

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

Summary

Heart Test Laboratories beats Avitar on 6 of the 9 factors compared between the two stocks.

About Avitar

Avitar, Inc. is a holding company which through its subsidiaries designs, develops, manufactures, and markets diagnostic test products and proprietary hydrophilic polyurethane foam disposables for medical, diagnostics, dental, and consumer applications in the United States. It offers ORALscreen 4 and ORALscreen DRUGOMETER, the oral fluid-based onsite assay systems, for detecting drugs of abuse, such as opiates, including heroin, morphine, codeine, and synthetic opiates comprising oxycocone-oxycontin, percoset, and hydrocodone-vicodin; cocaine such as crack; marijuana; and methamphetamines, including meth and ecstasy. The company also provides foam disposable products including medical-grade hydrophilic polyurethane foam disposables such as wound dressings comprising Hydrasorb, a wound dressing product for exudating wounds; and various custom foam products comprising a sinus dressing and a device used by astronauts for relieving ear pressure while in a pressurized space suit. In addition, it develops specialty wound dressings for the cardiac catheter lab market, as well as the Illizarov Dressing used for dressing external bone fixators in orthopedic procedures. The company markets its products and services to employers, diagnostic test distributors, medical supply companies, governmental agencies, schools, and corporations through direct sales force and strategic partners, as well as through a network of distributors. Avitar, Inc. was founded in 1986 and is based in Canton, Massachusetts with Additional office in Calgary, Canada.

About Heart Test Laboratories

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.