NeoGenomics (NASDAQ: NEO) and RadNet (NASDAQ:RDNT) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitabiliy, valuation, dividends, institutional ownership and earnings.
Risk and Volatility
NeoGenomics has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
Institutional and Insider Ownership
78.3% of NeoGenomics shares are held by institutional investors. Comparatively, 46.5% of RadNet shares are held by institutional investors. 12.2% of NeoGenomics shares are held by company insiders. Comparatively, 9.4% of RadNet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares NeoGenomics and RadNet’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NeoGenomics||$246.06 million||3.00||$27.30 million||($0.32)||-29.13|
|RadNet||$897.16 million||0.42||$111.45 million||$0.20||39.75|
RadNet has higher revenue and earnings than NeoGenomics. NeoGenomics is trading at a lower price-to-earnings ratio than RadNet, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for NeoGenomics and RadNet, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NeoGenomics currently has a consensus target price of $10.75, indicating a potential upside of 15.34%. RadNet has a consensus target price of $8.00, indicating a potential upside of 0.63%. Given NeoGenomics’ stronger consensus rating and higher possible upside, equities research analysts clearly believe NeoGenomics is more favorable than RadNet.
This table compares NeoGenomics and RadNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NeoGenomics beats RadNet on 9 of the 14 factors compared between the two stocks.
NeoGenomics Company Profile
NeoGenomics, Inc. is an operator of a network of cancer-focused genetic testing laboratories. The Company operates in Laboratory Testing Segment. This segment delivers testing services to hospitals, pathologists, oncologists, other clinicians and researchers. It has laboratory locations in Ft. Myers and Tampa, Florida; Aliso Viejo, Fresno, Irvine, and West Sacramento, California; Houston, Texas and Nashville, and Tennessee. It offers testing services, which include Cytogenetics, Fluorescence In-Situ Hybridization (FISH), Flow cytometry, Immunohistochemistry (IHC), Molecular testing and Pathology consultation. Its Pharma Services and Clinical Trials group provides testing services in support of its pharmaceutical clients’ oncology programs from discovery to commercialization. It helps its customers develop a biomarker hypothesis by recommending an optimal platform for molecular screening and backing its discovery tools with the informatics to capture meaningful data.
RadNet Company Profile
RadNet, Inc. is a provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States. As of December 31, 2016, the Company operated directly or indirectly through joint ventures, 305 centers located in California, Delaware, Florida, Maryland, New Jersey, New York and Rhode Island. Its centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Its services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures. As of December 31, 2016, the Company had in operation 257 MRI systems, 157 CT systems, 47 PET or combination PET/CT systems, 48 nuclear medicine systems, 479 X-ray systems, 279 mammography systems, 551 ultrasound systems and 104 fluoroscopy systems.
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