Digirad (NASDAQ:DRAD) and Trimedyne (OTCMKTS:TMED) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Risk and Volatility
Digirad has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500. Comparatively, Trimedyne has a beta of -1.23, suggesting that its share price is 223% less volatile than the S&P 500.
Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 17.1%. Trimedyne does not pay a dividend.
Institutional and Insider Ownership
54.8% of Digirad shares are owned by institutional investors. 9.1% of Digirad shares are owned by company insiders. Comparatively, 11.1% of Trimedyne shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Digirad and Trimedyne’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Digirad and Trimedyne, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Digirad and Trimedyne’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digirad||$118.34 million||0.22||-$35.73 million||N/A||N/A|
Trimedyne has lower revenue, but higher earnings than Digirad.
Digirad Corporation provides healthcare solutions in the United States. It operates through Diagnostic Services, Mobile Healthcare, and Diagnostic Imaging segments. The Diagnostic Services segment provides nuclear and ultrasound imaging services to physicians who perform nuclear imaging, echocardiography, vascular or general ultrasound tests, imaging systems, radiopharmaceuticals, and licensing services, as well as offers remote cardiac event monitoring services. The Mobile Healthcare segment offers contract diagnostic imaging services, including computerized tomography (CT), magnetic resonance imaging (MRI), positron emission tomography (PET), PET/CT, and nuclear medicine and healthcare services to hospitals, integrated delivery networks, and federal institutions on a long-term contract basis, as well as provisional services to institutions that are in transition. The Diagnostic Imaging segment develops and sells gamma camera imaging systems, such as nuclear cardiac imaging systems and general purpose nuclear imaging systems to physician offices and hospitals; and offers camera maintenance services. Digirad Corporation was founded in 1985 and is headquartered in Suwanee, Georgia.
Trimedyne, Inc. manufactures and sells lasers, and disposable and reusable fiber-optic laser devices for use in the medical field. It offers lasers, fibers, needles, and switch tips for use in orthopedics, urology, ear and nose surgery, throat surgery, gynecology, gastrointestinal surgery, general surgery, and other medical specialties. The company also provides 80 watt and 30 watt holmium lasers, and side firing laser needles to treat herniated or ruptured spinal discs. In addition, it engages in the provision of services, and rental of lasers and other medical equipment to hospitals and surgery centers on a fee-per-case basis. The company operates in Asia, Europe, Latin America, the Middle East, Australia, and internationally. It markets its products through commission sales representatives in the United States and independent distributors internationally. Trimedyne, Inc. was founded in 1980 and is based in Irvine, California.
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