Head-To-Head Survey: Fonar (NASDAQ:FONR) vs. Natus Medical (NASDAQ:BABY)

Fonar (NASDAQ:FONR) and Natus Medical (NASDAQ:BABY) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Institutional & Insider Ownership

49.2% of Fonar shares are owned by institutional investors. Comparatively, 91.6% of Natus Medical shares are owned by institutional investors. 8.6% of Fonar shares are owned by insiders. Comparatively, 1.7% of Natus Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Fonar and Natus Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fonar 22.50% 17.82% 15.81%
Natus Medical -7.38% 10.79% 6.57%

Earnings and Valuation

This table compares Fonar and Natus Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fonar $81.52 million 1.90 $21.23 million N/A N/A
Natus Medical $530.89 million 1.71 -$22.93 million $1.42 18.84

Fonar has higher earnings, but lower revenue than Natus Medical.

Analyst Recommendations

This is a summary of recent ratings and price targets for Fonar and Natus Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fonar 0 0 0 0 N/A
Natus Medical 0 1 1 0 2.50

Natus Medical has a consensus price target of $36.00, indicating a potential upside of 34.58%. Given Natus Medical’s higher possible upside, analysts plainly believe Natus Medical is more favorable than Fonar.

Volatility & Risk

Fonar has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Natus Medical has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

Fonar beats Natus Medical on 7 of the 12 factors compared between the two stocks.

Fonar Company Profile

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites States. It is involved in the research, development, production, and marketing of medical scanning equipment, which uses principles of MRI for the detection and diagnosis of human diseases, abnormalities, other medical conditions, and injuries. The company operates in two segments, Manufacturing and Servicing of Medical Equipment, and Management of Diagnostic Imaging Centers. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company markets its scanners to private diagnostic imaging centers and hospitals. It also provides non-medical management services, including development, administration, office space leasing, facilities, equipment, supplies, staffing, credentialing, accounting, billing and collection, assistance with compliance matters, and practice growth and marketing strategies development and implementation services, as well as engages in the training and supervision of non-medical personnel for diagnostic imaging facilities. The company also exports its products to the United Arab Emirates, Switzerland, Canada, England, Germany, and Puerto Rico. It owns and operates 4 diagnostic imaging facilities in Florida; and manages 26 MRI scanning facilities, including 19 facilities located in New York and 7 situated in Florida. The company was founded in 1978 and is based in Melville, New York.

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.

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