Contrasting iRhythm Technologies (NASDAQ:IRTC) and GBS (NYSE:GBS)

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

Analyst Ratings

This is a summary of current ratings for GBS and iRhythm Technologies, as reported by MarketBeat.com.

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

iRhythm Technologies has a consensus target price of $118.67, indicating a potential upside of 69.69%. Given iRhythm Technologies’ higher possible upside, analysts clearly believe iRhythm Technologies is more favorable than GBS.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GBS	N/A	-85.64%	-54.42%
iRhythm Technologies	-24.50%	-75.14%	-21.93%

Institutional and Insider Ownership

2.8% of GBS shares are held by institutional investors. 0.3% of GBS shares are held by company insiders. Comparatively, 0.7% of iRhythm Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

GBS has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares GBS and iRhythm Technologies’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GBS	$440,000.00	38.24	-$8.31 million	($0.56)	-2.02
iRhythm Technologies	$537.09 million	4.05	-$123.41 million	($4.23)	-16.53

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

Summary

GBS beats iRhythm Technologies on 7 of the 13 factors compared between the two stocks.

About GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.

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.