Reviewing Monogram Orthopaedics (NASDAQ:MGRM) and iRhythm Technologies (NASDAQ:IRTC)

iRhythm Technologies (NASDAQ:IRTC) and Monogram Orthopaedics (NASDAQ:MGRM) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Profitability

This table compares iRhythm Technologies and Monogram Orthopaedics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-24.50%	-75.14%	-21.93%
Monogram Orthopaedics	N/A	-112.33%	-78.71%

Insider and Institutional Ownership

0.4% of Monogram Orthopaedics shares are held by institutional investors. 0.7% of iRhythm Technologies shares are held by insiders. Comparatively, 32.1% of Monogram Orthopaedics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares iRhythm Technologies and Monogram Orthopaedics’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$537.09 million	4.06	-$123.41 million	($4.23)	-16.57
Monogram Orthopaedics	$364,999.00	224.73	-$13.74 million	($0.50)	-5.18

Monogram Orthopaedics has lower revenue, but higher earnings than iRhythm Technologies. iRhythm Technologies is trading at a lower price-to-earnings ratio than Monogram Orthopaedics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for iRhythm Technologies and Monogram Orthopaedics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	0	0	9	0	3.00
Monogram Orthopaedics	0	0	0	0	N/A

iRhythm Technologies presently has a consensus target price of $118.67, suggesting a potential upside of 64.56%. Given iRhythm Technologies’ higher possible upside, analysts plainly believe iRhythm Technologies is more favorable than Monogram Orthopaedics.

Volatility and Risk

iRhythm Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Monogram Orthopaedics has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Summary

Monogram Orthopaedics beats iRhythm Technologies on 8 of the 13 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.

About Monogram Orthopaedics

Monogram Orthopaedics, Inc. focuses on developing a product solution architecture to enable patient-optimized orthopaedic implants. The company intends to produce and market robotic surgical equipment and related software, orthopedic implants, tissue ablation tools, navigation consumables, and other miscellaneous instrumentation for use in reconstructive joint replacement procedures. Its robot prototype executes optimized paths for high-precision insertion of optimized implants in synthetic bone specimens. The company was formerly known as Monogram Arthroplasty Inc. and changed its name to Monogram Orthopaedics, Inc. in March 2017. The company was founded in 2015 and is headquartered in Austin, Texas.