Digirad (NASDAQ: DRAD) and Zeltiq Aesthetics (NASDAQ:ZLTQ) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Insider and Institutional Ownership
53.1% of Digirad shares are owned by institutional investors. 11.9% of Digirad shares are owned by insiders. Comparatively, 15.6% of Zeltiq Aesthetics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Digirad and Zeltiq Aesthetics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Digirad currently has a consensus price target of $6.00, suggesting a potential upside of 158.62%. Zeltiq Aesthetics has a consensus price target of $56.83, suggesting a potential upside of 0.63%. Given Digirad’s stronger consensus rating and higher probable upside, analysts clearly believe Digirad is more favorable than Zeltiq Aesthetics.
This table compares Digirad and Zeltiq Aesthetics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Digirad and Zeltiq Aesthetics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digirad||$125.47 million||0.37||$14.30 million||($0.59)||-3.93|
Digirad has higher revenue and earnings than Zeltiq Aesthetics. Zeltiq Aesthetics is trading at a lower price-to-earnings ratio than Digirad, indicating that it is currently the more affordable of the two stocks.
Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 9.5%. Zeltiq Aesthetics does not pay a dividend. Digirad pays out -37.3% of its earnings in the form of a dividend.
Digirad beats Zeltiq Aesthetics on 6 of the 11 factors compared between the two stocks.
Digirad Company Profile
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.
Zeltiq Aesthetics Company Profile
ZELTIQ Aesthetics, Inc. is a medical technology company. The Company focuses on developing and commercializing products utilizing its controlled-cooling technology platform. The Company’s product, the CoolSculpting System, is designed to reduce stubborn fat bulges. The Company sells its CoolSculpting system primarily to dermatologists, plastic surgeons, aesthetic specialists and obstetrics and gynecology (OBGYN) physicians. It also offers consumables, which are CoolSculpting procedure packs that are needed to perform procedures using its CoolSculpting system. CoolSculpting is a non-invasive fat reduction procedure. CoolSculpting utilizes its controlled cooling technology to selectively reduce stubborn fat bulges. The CoolSculpting system includes CoolSculpting control unit and CoolSculpting applicators. The CoolSculpting Applicator delivers vacuum suction and cooling to the fat bulge being treated.
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