Fonar (NASDAQ:FONR) & Evolus (NASDAQ:EOLS) Head to Head Contrast

Evolus (NASDAQ:EOLS) and Fonar (NASDAQ:FONR) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Evolus and Fonar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolus	$266.27 million	1.22	-$50.42 million	($0.92)	-5.43
Fonar	$104.35 million	1.11	$8.33 million	$1.11	16.79

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

Volatility and Risk

Evolus has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Fonar has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Evolus and Fonar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolus	-20.49%	N/A	-23.47%
Fonar	7.08%	4.66%	3.48%

Analyst Recommendations

This is a summary of recent ratings and price targets for Evolus and Fonar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolus	1	1	5	0	2.57
Fonar	0	1	0	0	2.00

Evolus presently has a consensus price target of $20.17, suggesting a potential upside of 303.33%. Given Evolus’ stronger consensus rating and higher probable upside, equities analysts plainly believe Evolus is more favorable than Fonar.

Insider & Institutional Ownership

90.7% of Evolus shares are owned by institutional investors. Comparatively, 50.6% of Fonar shares are owned by institutional investors. 5.9% of Evolus shares are owned by company insiders. Comparatively, 1.6% of Fonar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Evolus

Evolus, Inc., a performance beauty company, focuses on delivering products in the cash-pay aesthetic market in the United States, Canada, and Europe. The company offers Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. It also provides dermal filler products under the Estyme and Evolysse names. The company was incorporated in 2012 and is headquartered in Newport Beach, California.

About Fonar

FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates in two segments, Medical Equipment, and Physician Management and Diagnostic Services. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company also offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters, and development and implementation of practice growth and marketing strategies. It owns and operates diagnostic imaging facilities in Florida; and manages MRI scanning facilities. The company markets its scanners to private diagnostic imaging centers and hospital outpatient imaging facilities. FONAR Corporation was founded in 1970 and is based in Melville, New York.