Contrasting Drägerwerk AG & Co. KGaA (OTCMKTS:DGWPF) and Butterfly Network (NYSE:BFLY)

Drägerwerk AG & Co. KGaA (OTCMKTS:DGWPF) and Butterfly Network (NYSE:BFLY) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

13.9% of Drägerwerk AG & Co. KGaA shares are owned by institutional investors. Comparatively, 37.9% of Butterfly Network shares are owned by institutional investors. 22.0% of Butterfly Network shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Drägerwerk AG & Co. KGaA and Butterfly Network, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Drägerwerk AG & Co. KGaA	0	0	0	0	0.00
Butterfly Network	1	1	3	0	2.40

Butterfly Network has a consensus target price of $5.56, suggesting a potential downside of 34.15%. Given Butterfly Network’s stronger consensus rating and higher possible upside, analysts clearly believe Butterfly Network is more favorable than Drägerwerk AG & Co. KGaA.

Profitability

This table compares Drägerwerk AG & Co. KGaA and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Drägerwerk AG & Co. KGaA	N/A	N/A	N/A
Butterfly Network	-66.74%	-33.99%	-22.96%

Earnings & Valuation

This table compares Drägerwerk AG & Co. KGaA and Butterfly Network”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Drägerwerk AG & Co. KGaA	N/A	N/A	N/A	$5.51	16.88
Butterfly Network	$97.61 million	22.04	-$77.06 million	($0.29)	-29.13

Drägerwerk AG & Co. KGaA has higher earnings, but lower revenue than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Drägerwerk AG & Co. KGaA, indicating that it is currently the more affordable of the two stocks.

Summary

Butterfly Network beats Drägerwerk AG & Co. KGaA on 6 of the 11 factors compared between the two stocks.

About Drägerwerk AG & Co. KGaA

Drägerwerk AG & Co. KGaA operates as a medical and safety technology company worldwide. It develops, produces, and markets system solutions, equipment, and services for acute point of care, including emergency medicine, perioperative care, intensive care, and perinatal medicine. The company also develops, produces, and markets products, system solutions, and services for personal protection, gas detection technology, and integrated hazard management to customers in industry and mining sectors, as well as public sectors, such as fire departments, police, and disaster protection. Its products portfolio includes anesthesia devices and ventilators, thermoregulation equipment, hospitable consumables and accessories, supply units, lights, gas management systems, patient monitoring, software applications, system products, and other services. The company's product portfolio also comprises stationary and mobile gas detection systems, personal protective equipment, and alcohol and drug testing devices. In addition, it offers various training and services, as well as fire training facilities for firefighters. The company was founded in 1889 and is headquartered in Lübeck, Germany. Drägerwerk AG & Co. KGaA operates as a subsidiary of Stefan DrÄGer Gmbh.

About Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.