RadNet (NASDAQ: RDNT) and Enzo Biochem (NYSE:ENZ) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitabiliy, analyst recommendations, institutional ownership and valuation.

Earnings & Valuation

This table compares RadNet and Enzo Biochem’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RadNet $897.16 million 0.41 $111.45 million $0.17 45.89
Enzo Biochem $106.24 million 4.88 -$4.59 million $0.72 15.51

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

Insider & Institutional Ownership

46.3% of RadNet shares are held by institutional investors. Comparatively, 61.4% of Enzo Biochem shares are held by institutional investors. 9.4% of RadNet shares are held by insiders. Comparatively, 9.5% of Enzo Biochem shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for RadNet and Enzo Biochem, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RadNet 0 2 1 0 2.33
Enzo Biochem 0 0 0 0 N/A

RadNet currently has a consensus price target of $8.00, suggesting a potential upside of 2.56%. Given RadNet’s higher possible upside, equities analysts plainly believe RadNet is more favorable than Enzo Biochem.

Volatility & Risk

RadNet has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Enzo Biochem has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares RadNet and Enzo Biochem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RadNet 0.86% 19.20% 1.04%
Enzo Biochem 31.57% -5.13% -4.17%

Summary

RadNet beats Enzo Biochem on 7 of the 12 factors compared between the two stocks.

About RadNet

RadNet, Inc. is a provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States. As of December 31, 2016, the Company operated directly or indirectly through joint ventures, 305 centers located in California, Delaware, Florida, Maryland, New Jersey, New York and Rhode Island. Its centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Its services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures. As of December 31, 2016, the Company had in operation 257 MRI systems, 157 CT systems, 47 PET or combination PET/CT systems, 48 nuclear medicine systems, 479 X-ray systems, 279 mammography systems, 551 ultrasound systems and 104 fluoroscopy systems.

About Enzo Biochem

Enzo Biochem, Inc. is a bioscience company focusing on delivering and applying technology capabilities to produce products and services. The Company’s segments include Enzo Clinical Labs, Enzo Life Sciences and Enzo Therapeutics. Enzo Clinical Labs is a clinical reference laboratory providing a range of clinical services to physicians, medical centers, other clinical labs and pharmaceutical companies. It offers a menu of molecular and other clinical laboratory tests or procedures. Enzo Life Sciences manufactures, develops and markets products and tools to clinical research, drug development and bioscience research customers. Enzo Therapeutics is a biopharmaceutical venture that develops multiple approaches in the areas of gastrointestinal, infectious, ophthalmic and metabolic diseases. Its products in the development pipeline include a range of assays for detection of various women’s health infectious agents, as well as for use in the identification of pathogens for other markets.

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