Digirad (NASDAQ:DRAD) versus Its Rivals Head-To-Head Analysis

Digirad (NASDAQ: DRAD) is one of 79 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it weigh in compared to its peers? We will compare Digirad to related companies based on the strength of its dividends, earnings, institutional ownership, profitability, risk, analyst recommendations and valuation.

Volatility and Risk

Digirad has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Digirad’s peers have a beta of 1.53, indicating that their average share price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Digirad and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digirad 0 0 1 0 3.00
Digirad Competitors 327 1962 3466 111 2.57

Digirad currently has a consensus target price of $6.00, suggesting a potential upside of 122.22%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 4.42%. Given Digirad’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Digirad is more favorable than its peers.

Profitability

This table compares Digirad and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digirad -9.93% 9.82% 6.02%
Digirad Competitors -153.47% -23.25% -9.36%

Valuation and Earnings

This table compares Digirad and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Digirad $125.47 million $14.30 million -4.66
Digirad Competitors $2.14 billion $234.27 million -89.74

Digirad’s peers have higher revenue and earnings than Digirad. Digirad is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 8.1%. Digirad pays out -37.9% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.8% and pay out 28.6% of their earnings in the form of a dividend. Digirad is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

53.1% of Digirad shares are held by institutional investors. Comparatively, 51.8% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 11.9% of Digirad shares are held by insiders. Comparatively, 18.4% of shares of all “Advanced Medical Equipment & Technology” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Digirad beats its peers on 11 of the 15 factors compared.

About Digirad

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.

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