Reviewing Terumo (OTCMKTS:TRUMY) & iRadimed (NASDAQ:IRMD)

Terumo (OTCMKTS:TRUMY) and iRadimed (NASDAQ:IRMD) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Dividends

Terumo pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. iRadimed pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Terumo pays out 7.0% of its earnings in the form of a dividend. iRadimed pays out 42.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. iRadimed has raised its dividend for 1 consecutive years. iRadimed is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

92.3% of iRadimed shares are held by institutional investors. 34.6% of iRadimed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Terumo and iRadimed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terumo	13.83%	10.44%	7.34%
iRadimed	26.85%	23.90%	20.89%

Analyst Ratings

This is a summary of current recommendations and price targets for Terumo and iRadimed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terumo	0	0	0	2	4.00
iRadimed	0	1	3	1	3.00

iRadimed has a consensus target price of $120.00, indicating a potential upside of 39.93%. Given iRadimed’s higher possible upside, analysts clearly believe iRadimed is more favorable than Terumo.

Risk & Volatility

Terumo has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, iRadimed has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Valuation and Earnings

This table compares Terumo and iRadimed”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terumo	$7.52 billion	3.09	$897.03 million	$0.71	22.18
iRadimed	$89.34 million	12.27	$22.48 million	$1.87	45.86

Terumo has higher revenue and earnings than iRadimed. Terumo is trading at a lower price-to-earnings ratio than iRadimed, indicating that it is currently the more affordable of the two stocks.

Summary

iRadimed beats Terumo on 13 of the 18 factors compared between the two stocks.

About Terumo

Terumo Corporation is a Japan-based medical technology company that develops and manufactures products for hospitals, clinics and other healthcare providers. Founded in 1921, the company began by producing clinical thermometers and has since expanded into a broad range of medical devices and services. Terumo’s businesses include cardiovascular and vascular products, such as catheter-based devices and systems used in the treatment of heart and vascular conditions; medical care products, including infusion and injection devices; and blood and cell technologies used to collect, process and manage blood and cellular therapies.

About iRadimed

iRadimed Corporation develops, manufactures and markets medical devices designed for use in magnetic resonance imaging (MRI) environments. Its products include MRI-compatible patient monitoring systems and intravenous infusion pumps, along with related accessories. The company’s monitoring systems help clinicians track patients during MRI procedures, while its infusion pumps deliver fluids and medications in the MRI suite. iRadimed’s equipment is designed to operate in the presence of MRI magnets, where conventional medical devices may not be suitable.