Critical Analysis: Jin Medical International (NASDAQ:ZJYL) and Heart Test Laboratories (NASDAQ:HSCS)

Jin Medical International (NASDAQ:ZJYL) and Heart Test Laboratories (NASDAQ:HSCS) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Jin Medical International and Heart Test Laboratories, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jin Medical International	0	0	0	0	0.00
Heart Test Laboratories	0	0	2	0	3.00

Heart Test Laboratories has a consensus price target of $13.50, indicating a potential upside of 260.96%. Given Heart Test Laboratories’ stronger consensus rating and higher possible upside, analysts clearly believe Heart Test Laboratories is more favorable than Jin Medical International.

Risk & Volatility

Jin Medical International has a beta of 13.67, meaning that its stock price is 1,267% more volatile than the S&P 500. Comparatively, Heart Test Laboratories has a beta of 3.23, meaning that its stock price is 223% more volatile than the S&P 500.

Earnings & Valuation

This table compares Jin Medical International and Heart Test Laboratories”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jin Medical International	$20.13 million	7.42	$2.88 million	N/A	N/A
Heart Test Laboratories	$20,000.00	170.17	-$6.61 million	($21.64)	-0.17

Jin Medical International has higher revenue and earnings than Heart Test Laboratories.

Institutional and Insider Ownership

17.2% of Heart Test Laboratories shares are owned by institutional investors. 1.8% of Heart Test Laboratories shares are owned 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.

Summary

Heart Test Laboratories beats Jin Medical International on 6 of the 11 factors compared between the two stocks.

About Jin Medical International

Jin Medical International Ltd. engages in the design, development, manufacturing, and sale of wheelchair and other living aids products for people with disabilities or impaired mobility in China and internationally. It also offers oxygen concentrators and bathing machines. The company was founded in 2006 and is based in Changzhou, China. Jin Medical International Ltd. is a subsidiary of Jolly Harmony Enterprises Limited.

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.