Digirad Corporation (NASDAQ: DRAD) and Fulgent Genetic (NASDAQ:FLGT) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.
Earnings & Valuation
This table compares Digirad Corporation and Fulgent Genetic’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Digirad Corporation||$125.47 million||0.40||$14.30 million||($0.58)||-4.31|
|Fulgent Genetic||$18.27 million||3.22||-$5.34 million||N/A||N/A|
Digirad Corporation has higher revenue and earnings than Fulgent Genetic.
Digirad Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 8.8%. Fulgent Genetic does not pay a dividend. Digirad Corporation pays out -37.9% of its earnings in the form of a dividend.
This is a summary of recent ratings for Digirad Corporation and Fulgent Genetic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digirad Corporation presently has a consensus price target of $6.00, indicating a potential upside of 140.00%. Fulgent Genetic has a consensus price target of $7.25, indicating a potential upside of 118.37%. Given Digirad Corporation’s higher possible upside, analysts clearly believe Digirad Corporation is more favorable than Fulgent Genetic.
Institutional and Insider Ownership
53.0% of Digirad Corporation shares are owned by institutional investors. Comparatively, 16.8% of Fulgent Genetic shares are owned by institutional investors. 11.9% of Digirad Corporation shares are owned by insiders. Comparatively, 58.8% of Fulgent Genetic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Digirad Corporation and Fulgent Genetic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Digirad Corporation beats Fulgent Genetic on 8 of the 13 factors compared between the two stocks.
About Digirad Corporation
Digirad Corporation provides healthcare solutions. The Company’s segments include Diagnostic Services, Mobile Healthcare, Diagnostic Imaging and Medical Device Sales and Services. Through Diagnostic Services, the Company offers an imaging services program as an alternative to purchasing equipment or outsourcing the procedures to another physician or imaging center. Through Mobile Healthcare segment, the Company provides contract sales services and diagnostic imaging services. Through Diagnostic Imaging segment, the Company sells its internally developed solid-state gamma camera imaging systems and camera maintenance contracts. Through Medical Device Sales and Services segment, the Company provides contract sales services, as well as warranty and post-warranty services, under contract with Philips Healthcare within a defined region in the upper Midwest region of the United States.
About Fulgent Genetic
Fulgent Genetics, Inc. is a technology company. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. The Company has developed a technology platform that integrates data comparison and suppression algorithms, adaptive learning software, advanced genetic diagnostics tools and integrated laboratory processes. As of December 31, 2015, the Company’s test menu includes approximately 18,000 single-gene tests and over 200 pre-established, multi-gene, disease-specific panels that collectively test for approximately 7,500 genetic conditions, including various cancers, cardiovascular diseases and neurological disorders. The Company’s gene probes are specifically engineered to generate genetic data that is optimized for its software, which enables to rapidly incorporate new genes into its test menu, develop new panels of disease-specific tests and customize tests for its customers.
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