Psychemedics (NASDAQ:PMD) and RadNet (NASDAQ:RDNT) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares Psychemedics and RadNet’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Psychemedics||$39.70 million||2.61||$6.12 million||N/A||N/A|
Psychemedics has higher earnings, but lower revenue than RadNet.
Psychemedics pays an annual dividend of $0.72 per share and has a dividend yield of 3.8%. RadNet does not pay a dividend.
This is a breakdown of recent ratings and price targets for Psychemedics and RadNet, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RadNet has a consensus price target of $14.67, suggesting a potential upside of 7.21%. Given RadNet’s higher probable upside, analysts plainly believe RadNet is more favorable than Psychemedics.
Volatility and Risk
Psychemedics has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, RadNet has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
55.7% of Psychemedics shares are held by institutional investors. Comparatively, 59.9% of RadNet shares are held by institutional investors. 9.9% of Psychemedics shares are held by insiders. Comparatively, 7.6% of RadNet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Psychemedics and RadNet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Psychemedics Company Profile
Psychemedics Corporation provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States and internationally. The company's tests provide quantitative information that can indicate the approximate amount of drug ingested, as well as historical data, which can show a pattern of individual drug use over a longer period of time. It provides screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, PCP, amphetamines, synthetic cannabinoids, and benzodiazepines, as well as opiates, including heroin, hydrocodone, hydromorphone, oxycodone, oxymorphone, and codeine. The company offers its services to employers for applicant and employee testing; treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children's drug use; and Fortune 500 companies and small to mid-size corporations, as well as school and government entities. Psychemedics Corporation was founded in 1985 and is headquartered in Acton, Massachusetts.
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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