IRIS International (NASDAQ: IRIS) and Quotient Limited (NASDAQ:QTNT) are both small-cap diagnostic & testing substances companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

IRIS International has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Quotient Limited has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for IRIS International and Quotient Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
Quotient Limited 0 0 2 0 3.00

Quotient Limited has a consensus target price of $12.50, indicating a potential upside of 168.24%. Given Quotient Limited’s higher possible upside, analysts clearly believe Quotient Limited is more favorable than IRIS International.

Valuation and Earnings

This table compares IRIS International and Quotient Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
IRIS International N/A N/A N/A $0.04 85.25
Quotient Limited $22.23 million 9.55 -$85.06 million ($2.88) -1.62

IRIS International has higher revenue, but lower earnings than Quotient Limited. Quotient Limited is trading at a lower price-to-earnings ratio than IRIS International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IRIS International and Quotient Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIS International -61.58% -36.70% -29.47%
Quotient Limited -404.29% -13,050.41% -75.49%

Insider & Institutional Ownership

68.9% of IRIS International shares are owned by institutional investors. Comparatively, 47.7% of Quotient Limited shares are owned by institutional investors. 9.7% of IRIS International shares are owned by insiders. Comparatively, 29.0% of Quotient Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

IRIS International Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

Quotient Limited Company Profile

Quotient Limited is a diagnostics company. The Company focuses on blood grouping and donor disease screening, which is referred to as transfusion diagnostics. It is engaged in developing, manufacturing and commercializing conventional reagent products used for blood grouping within the global transfusion diagnostics market. It is engaged in developing MosaiQ, which is its technology platform. The Company develops, manufactures and commercializes the products, including antisera products, reagent red blood cells, whole blood controls and ancillary products. Its antisera products contain antibodies used to identify blood group antigens. Its antisera products are monoclonal antibodies manufactured from master cell lines it owns. Its reagent red blood cells products are composed of human red blood cells formulated to enable the identification of blood group antibodies. The Company develops, manufactures and sells conventional reagent products to original equipment manufacturers (OEMs).

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