Critical Comparison: Digirad Corporation (DRAD) versus Hologic (HOLX)
Digirad Corporation (NASDAQ: DRAD) and Hologic (NASDAQ:HOLX) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility & Risk
Digirad Corporation has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Hologic has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Digirad Corporation and Hologic, 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 155.32%. Hologic has a consensus price target of $47.54, indicating a potential upside of 16.29%. Given Digirad Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Digirad Corporation is more favorable than Hologic.
Institutional and Insider Ownership
52.1% of Digirad Corporation shares are held by institutional investors. Comparatively, 97.7% of Hologic shares are held by institutional investors. 11.9% of Digirad Corporation shares are held by insiders. Comparatively, 0.8% of Hologic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Digirad Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 9.4%. Hologic does not pay a dividend. Digirad Corporation pays out -37.9% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Digirad Corporation and Hologic’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Digirad Corporation||$125.47 million||0.38||$14.30 million||($0.58)||-4.05|
|Hologic||$3.06 billion||3.68||$755.50 million||$2.64||15.48|
Hologic has higher revenue and earnings than Digirad Corporation. Digirad Corporation is trading at a lower price-to-earnings ratio than Hologic, indicating that it is currently the more affordable of the two stocks.
This table compares Digirad Corporation and Hologic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hologic beats Digirad Corporation on 10 of the 16 factors compared between the two stocks.
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.
Hologic Company Profile
Hologic, Inc. is a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products with an emphasis on women’s health. The Company operates through four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. The diagnostics products include Aptima family of assays, ThinPrep system, the Rapid Fetal Fibronectin Test and Procleix blood screening assays. It offers viral load assays for the quantitation of Hepatitis B Virus (HBV), Hepatitis C Virus (HCV) and Human Immunodeficiency Virus-1 (HIV-1). The Breast Health products include breast imaging and related products and accessories, including digital mammography systems, computer-aided detection (CAD) and breast biopsy guidance systems. The GYN Surgical products include NovaSure Endometrial Ablation System and MyoSure Hysteroscopic Tissue Removal System. The Skeletal Health segment offers Discovery and Horizon X-ray bone densitometers and mini C-arm imaging systems.
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