Fonar (NASDAQ:FONR) and Cutera (NASDAQ:CUTR) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Insider and Institutional Ownership
51.0% of Fonar shares are owned by institutional investors. Comparatively, 94.0% of Cutera shares are owned by institutional investors. 3.0% of Fonar shares are owned by insiders. Comparatively, 1.8% of Cutera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Fonar and Cutera, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cutera has a consensus price target of $34.67, indicating a potential upside of 92.91%. Given Cutera’s higher probable upside, analysts clearly believe Cutera is more favorable than Fonar.
This table compares Fonar and Cutera’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Fonar and Cutera’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fonar||$81.52 million||1.57||$21.23 million||N/A||N/A|
|Cutera||$162.72 million||1.55||-$30.77 million||($2.23)||-8.06|
Fonar has higher earnings, but lower revenue than Cutera.
Volatility and Risk
Fonar has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Cutera has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Fonar beats Cutera on 8 of the 12 factors compared between the two stocks.
Fonar Company Profile
FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites States. It is involved in the research, development, production, and marketing of medical scanning equipment, which uses principles of MRI for the detection and diagnosis of human diseases, abnormalities, other medical conditions, and injuries. The company operates in two segments, Manufacturing and Servicing of Medical Equipment, and Management of Diagnostic Imaging Centers. 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 markets its scanners to private diagnostic imaging centers and hospitals. It also provides non-medical management services, including development, administration, office space leasing, facilities, equipment, supplies, staffing, credentialing, accounting, billing and collection, assistance with compliance matters, and practice growth and marketing strategies development and implementation services, as well as engages in the training and supervision of non-medical personnel for diagnostic imaging facilities. The company also exports its products to the United Arab Emirates, Switzerland, Canada, England, Germany, and Puerto Rico. It owns and operates 4 diagnostic imaging facilities in Florida; and manages 26 MRI scanning facilities, including 19 facilities located in New York and 7 situated in Florida. The company was founded in 1978 and is based in Melville, New York.
Cutera Company Profile
Cutera, Inc., a medical device company, designs, develops, manufactures, markets, and services laser and other energy based aesthetics systems worldwide. The company offers enlighten platform, a laser system that is used for tattoo removal, as well as for the treatment of benign pigmented lesions; excel HR platform, a hair removal solution for various skin types; and truSculpt, a high-powered radio frequency platform designed for deep tissue heating. It also provides excel V, a vascular and benign pigmented lesion treatment platform; xeo platform, a multi-application platform on which a customer purchases hand piece applications for the removal of unwanted hair, treatment of vascular lesions, and skin rejuvenation by treating discoloration, fine lines, and laxity; Juliet, a laser system for vaginal health; and Secret RF, a fractional radio frequency microneedling device for skin rejuvenation. In addition, the company offers GenesisPlus system, a laser product for use in the temporary increase of clear nails in patients with onychomycosis, as well as for the treatment of fine wrinkles, diffuse redness, and rosacea; and CoolGlide, as well as myQ, a third-party sourced system for the Japanese market. Further, it provides pulsed light hand pieces for the treatment of discoloration, hair removal, and vascular treatments; Pearl and Pearl Fractional hand pieces; and post-warranty services through extended service contracts or direct billing, as well as offers Titan hand piece refills and marketing brochures through the Internet. The company markets and sells its products through direct sales force to plastic surgeons, dermatologists, gynecologists, family practitioners, primary care physicians, physicians performing aesthetic treatments in non-medical offices, and other qualified practitioners, as well as for physicians offering aesthetic treatments in non-medical offices. Cutera, Inc. was founded in 1998 and is headquartered in Brisbane, California.
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