Fonar (NASDAQ:FONR) and NxStage Medical (NASDAQ:NXTM) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
Fonar has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, NxStage Medical has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.
This table compares Fonar and NxStage Medical’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fonar||$81.52 million||1.58||$21.23 million||N/A||N/A|
|NxStage Medical||$393.94 million||4.89||-$14.47 million||($0.22)||-131.36|
Fonar has higher earnings, but lower revenue than NxStage Medical.
Insider and Institutional Ownership
52.2% of Fonar shares are owned by institutional investors. Comparatively, 83.5% of NxStage Medical shares are owned by institutional investors. 3.0% of Fonar shares are owned by insiders. Comparatively, 4.9% of NxStage Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Fonar and NxStage Medical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Fonar and NxStage Medical, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fonar beats NxStage Medical on 6 of the 10 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.
NxStage Medical Company Profile
NxStage Medical, Inc., a medical technology company, develops, manufactures, and markets products and services for patients suffering from chronic or acute kidney failure. Its primary product includes the System One, a portable hemodialysis system, which is used primarily for home hemodialysis and a range of dialysis therapies to deliver in the home setting. The company operates through three segments: System One, In-Center, and Services. The System One segment sells and rents the NxStage System One and PureFlow SL dialysate preparation equipment, as well as sells disposable products in the home and critical care market for the treatment of end-stage renal disease (ESRD) patients in the home or a home-like setting and in the critical care market for the treatment of hospital-based patients with acute kidney failure or fluid overload. The In-Center segment sells blood tubing sets and needles for hemodialysis primarily for the treatment of ESRD patients at dialysis centers, and needles for apheresis. The Services segment offers dialysis services to patients at NxStage Kidney Care dialysis centers. As of February 3, 2018, it had 21 centers. NxStage Medical, Inc. markets its products through direct sales to dialysis clinics and hospitals in the United States, the United Kingdom, and Canada, as well as through distributors in Europe and internationally. The company was formerly known as QB Medical, Inc. and changed its name to NxStage Medical, Inc. NxStage Medical, Inc. was founded in 1998 and is headquartered in Lawrence, Massachusetts.
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