Natus Medical (NASDAQ:NTUS) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
This table compares Natus Medical and IRIDEX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Natus Medical and IRIDEX’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natus Medical||$530.89 million||1.96||-$22.93 million||$1.42||21.50|
|IRIDEX||$42.60 million||0.62||-$12.81 million||($1.05)||-1.83|
IRIDEX has lower revenue, but higher earnings than Natus Medical. IRIDEX is trading at a lower price-to-earnings ratio than Natus Medical, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Natus Medical has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Natus Medical and IRIDEX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IRIDEX has a consensus price target of $8.50, suggesting a potential upside of 342.71%. Given IRIDEX’s higher probable upside, analysts plainly believe IRIDEX is more favorable than Natus Medical.
Institutional and Insider Ownership
90.7% of Natus Medical shares are held by institutional investors. Comparatively, 48.5% of IRIDEX shares are held by institutional investors. 1.7% of Natus Medical shares are held by insiders. Comparatively, 5.0% of IRIDEX 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.
Natus Medical beats IRIDEX on 8 of the 13 factors compared between the two stocks.
Natus Medical Company Profile
Natus Medical Incorporated provides neurology, newborn care, and hearing and balance assessment healthcare products and services worldwide. It offers products and services used for the screening, diagnosis, detection, treatment, monitoring, and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction and neurosurgical treatments, epilepsy, sleep disorders, neuromuscular diseases, and balance and mobility disorders. The company also provides computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology; and software systems for managing and tracking disorders and diseases for public health laboratories. In addition, it offers electroencephalography, long term monitoring, intensive care unit monitoring, electromyography, sleep analysis or polysomnography, and intra-operative monitoring solutions. Further, the company provides hearing screening products; diagnostic hearing assessment products to screen for/or diagnose hearing loss, or to identify abnormalities affecting the peripheral and central auditory nervous systems; balance and mobility systems to diagnose and assist in treating balance disorders; and thermoregulation products to control the incubators and warmers. Additionally, it offers jaundice management products; brain injury products; NICVIEW, a live streaming video for families with babies in the neonatal intensive care unit (NICU); essential products used in the everyday operation of NICU; and eye imaging systems and products used in the advanced science and practice of neonatal and pediatric retinal imaging. The company also provides computer-based audiological, otoneurologic, and vestibular instrumentation and sound rooms to hearing and balance care professionals. It serves hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Natus Medical Incorporated was incorporated in 1987 and is headquartered in Pleasanton, California.
IRIDEX Company Profile
IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. The company offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of diabetic macular edema and other retinal diseases; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser systems, which are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. It also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; and slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures. In addition, the company offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system that delivers laser to treat glaucoma; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe Illuminate and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products used in vitrectomy procedures. It serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, and office clinics. IRIDEX Corporation markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was founded in 1989 and is headquartered in Mountain View, California.
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