IRIDEX Corporation (IRIX) & Digirad Corporation (DRAD) Financial Review
IRIDEX Corporation (NASDAQ: IRIX) and Digirad Corporation (NASDAQ:DRAD) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
This is a breakdown of recent ratings and target prices for IRIDEX Corporation and Digirad Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IRIDEX Corporation presently has a consensus price target of $13.00, suggesting a potential upside of 59.51%. Digirad Corporation has a consensus price target of $6.00, suggesting a potential upside of 135.29%. Given Digirad Corporation’s higher probable upside, analysts clearly believe Digirad Corporation is more favorable than IRIDEX Corporation.
Valuation & Earnings
This table compares IRIDEX Corporation and Digirad Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|IRIDEX Corporation||$46.16 million||2.04||-$11.71 million||($1.71)||-4.77|
|Digirad Corporation||$125.47 million||0.41||$14.30 million||($0.58)||-4.40|
Digirad Corporation has higher revenue and earnings than IRIDEX Corporation. IRIDEX Corporation is trading at a lower price-to-earnings ratio than Digirad Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
IRIDEX Corporation has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Digirad Corporation has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
Digirad Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 8.6%. IRIDEX Corporation does not pay a dividend. Digirad Corporation pays out -37.9% of its earnings in the form of a dividend.
Insider & Institutional Ownership
48.2% of IRIDEX Corporation shares are owned by institutional investors. Comparatively, 53.0% of Digirad Corporation shares are owned by institutional investors. 5.0% of IRIDEX Corporation shares are owned by insiders. Comparatively, 11.9% of Digirad Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares IRIDEX Corporation and Digirad Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Digirad Corporation beats IRIDEX Corporation on 12 of the 13 factors compared between the two stocks.
IRIDEX Corporation Company Profile
IRIDEX Corporation is a provider of therapeutic based laser consoles, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. The Company operates through ophthalmology segment. Its ophthalmology products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes, and are used in the treatment of serious eye diseases, including the over three causes of irreversible blindness, such as diabetic retinopathy, glaucoma and age-related macular degeneration (AMD). In addition, the Company’s ophthalmology products are often used in vitrectomy procedures (used to treat proliferative diabetic retinopathy, macular holes, retinal tears and detachments), which are generally performed in the operating room and require a consumable single use intraocular laser probe (EndoProbe) to deliver light to the back of the eye together with other instrumentation.
Digirad Corporation 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.
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