Digirad Corporation (NASDAQ: DRAD) and Hologic (NASDAQ:HOLX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

53.0% of Digirad Corporation shares are held by institutional investors. Comparatively, 96.4% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Digirad Corporation and Hologic, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digirad Corporation 0 0 1 0 3.00
Hologic 0 4 9 0 2.69

Digirad Corporation currently has a consensus price target of $6.00, suggesting a potential upside of 140.00%. Hologic has a consensus price target of $47.54, suggesting a potential upside of 19.68%. Given Digirad Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Digirad Corporation is more favorable than Hologic.

Dividends

Digirad Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 8.8%. Hologic does not pay a dividend. Digirad Corporation pays out -37.9% of its earnings in the form of a dividend.

Profitability

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
Digirad Corporation -9.93% 9.82% 6.02%
Hologic 24.70% 21.69% 7.20%

Volatility and Risk

Digirad Corporation has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Hologic has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Earnings & Valuation

This table compares Digirad Corporation and Hologic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Digirad Corporation $125.47 million 0.40 $14.30 million ($0.58) -4.31
Hologic $3.06 billion 3.57 $755.50 million $2.64 15.05

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.

Summary

Hologic beats Digirad Corporation on 10 of the 16 factors compared between the two stocks.

About Digirad Corporation

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.

About Hologic

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.

Receive News & Stock Ratings for Digirad Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digirad Corporation and related stocks with our FREE daily email newsletter.