Critical Review: iRadimed Corporation (NASDAQ:IRMD) & Masimo Corporation (MASI)

iRadimed Corporation (NASDAQ: IRMD) and Masimo Corporation (NASDAQ:MASI) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

17.3% of iRadimed Corporation shares are held by institutional investors. Comparatively, 83.6% of Masimo Corporation shares are held by institutional investors. 60.1% of iRadimed Corporation shares are held by insiders. Comparatively, 16.6% of Masimo Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iRadimed Corporation and Masimo Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iRadimed Corporation 0 1 0 0 2.00
Masimo Corporation 0 4 2 0 2.33

iRadimed Corporation presently has a consensus target price of $11.50, suggesting a potential upside of 36.09%. Masimo Corporation has a consensus target price of $83.00, suggesting a potential downside of 13.18%. Given iRadimed Corporation’s higher possible upside, equities analysts clearly believe iRadimed Corporation is more favorable than Masimo Corporation.

Volatility & Risk

iRadimed Corporation has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Masimo Corporation has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares iRadimed Corporation and Masimo Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iRadimed Corporation 16.38% 15.28% 13.20%
Masimo Corporation 44.86% 24.19% 15.00%

Earnings and Valuation

This table compares iRadimed Corporation and Masimo Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
iRadimed Corporation $28.69 million 3.17 $7.47 million $0.40 21.13
Masimo Corporation $709.76 million 6.89 $171.03 million $5.88 16.26

Masimo Corporation has higher revenue and earnings than iRadimed Corporation. Masimo Corporation is trading at a lower price-to-earnings ratio than iRadimed Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Masimo Corporation beats iRadimed Corporation on 10 of the 14 factors compared between the two stocks.

About iRadimed Corporation

IRADIMED CORPORATION (IRADIMED) develops, manufactures, markets and distributes Magnetic Resonance Imaging (MRI) compatible products, and provides non-magnetic intravenous (IV) infusion pump systems. The Company operates through development, manufacture and sale of MRI compatible products and IV infusion pump systems for use by hospitals and acute care facilities during MRI procedures segment. Its MRidium MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, non-ferrous part and other features in order to deliver anesthesia and other IV fluids during various MRI procedures. MRI compatible IV infusion pump system includes the 3860+ MRI compatible IV infusion pump, single-use IV tubing sets, a non-magnetic pole and a lithium battery. In addition, it offers optional upgrade systems, including the 3865 Remote Display/Control, 3861 Side Car, Dose Error Reduction System (DERS) and SpO2 monitor.

About Masimo Corporation

Masimo Corporation is a medical technology company that develops, manufactures and markets a range of non-invasive patient monitoring technologies. The Company’s business is Measure-through Motion and Low Perfusion pulse oximetry monitoring, known as Masimo Signal Extraction Technology (SET) pulse oximetry. Its product offerings include non-invasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical, brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring. In addition, the Company has developed the Root patient monitoring and connectivity platform, the Radical-7 bedside and portable patient monitor, and the Radius-7 wearable wireless patient monitor. It offers Patient SafetyNet remote patient surveillance monitoring system, which allows patients to be monitored through a personal computer-based monitor or by care providers through their pagers, voice-over-Internet Protocol (IP) phones or smartphones.

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