DermTech (NASDAQ:DMTK) and RadNet (NASDAQ:RDNT) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
Earnings and Valuation
This table compares DermTech and RadNet’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RadNet||$975.15 million||1.18||$32.24 million||$0.66||34.65|
This table compares DermTech and RadNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
DermTech has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, RadNet has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for DermTech and RadNet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DermTech presently has a consensus target price of $15.00, indicating a potential upside of 7.91%. RadNet has a consensus target price of $20.25, indicating a potential downside of 11.46%. Given DermTech’s higher possible upside, analysts plainly believe DermTech is more favorable than RadNet.
Institutional & Insider Ownership
33.4% of DermTech shares are owned by institutional investors. Comparatively, 63.4% of RadNet shares are owned by institutional investors. 21.0% of DermTech shares are owned by insiders. Comparatively, 6.1% of RadNet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
RadNet beats DermTech on 8 of the 10 factors compared between the two stocks.
DermTech Company Profile
DermTech, Inc., a molecular genomics company, develops and markets novel non-invasive diagnostic tests to diagnosis skin cancer and related conditions in the United States. The company offers Pigmented Lesion Assay (PLA), a gene expression test that helps rule out melanoma and the need for a surgical biopsy of atypical pigmented lesions. It also provides Nevome test, an adjunctive reflex test for the PLA; and adhesive skin sample collection kits, as well as gene expression assays for the Th1, Th2, IFN-gamma, and Th17 inflammatory pathways. The company sells its products to pathology and oncology practitioners. DermTech, Inc. was incorporated in 1995 and is headquartered in La Jolla, California.
RadNet Company Profile
RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems for the imaging industry, including picture archiving communications systems; and provides teleradiology services for remote interpretation of images on behalf of radiology groups, hospitals, and imaging center customers. As of December 31, 2017, it operated 297 facilities directly or indirectly through joint ventures with hospitals in California, Delaware, Florida, Maryland, New Jersey, and New York. The company was founded in 1981 and is headquartered in Los Angeles, California.
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