Digirad (NASDAQ: DRAD) is one of 77 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its peers? We will compare Digirad to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Insider and Institutional Ownership

53.1% of Digirad shares are held by institutional investors. Comparatively, 51.8% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 11.9% of Digirad shares are held by company insiders. Comparatively, 18.4% of shares of all “Advanced Medical Equipment & Technology” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Digirad and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digirad -9.93% 9.82% 6.02%
Digirad Competitors -322.21% -22.21% -8.38%

Earnings & Valuation

This table compares Digirad and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Digirad $125.47 million $14.30 million -3.88
Digirad Competitors $2.14 billion $234.27 million -82.64

Digirad’s peers have higher revenue and earnings than Digirad. Digirad is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 9.8%. Digirad pays out -37.9% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.9% and pay out 27.4% of their earnings in the form of a dividend. Digirad is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility and Risk

Digirad has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, Digirad’s peers have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Digirad and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digirad 0 0 1 0 3.00
Digirad Competitors 270 1853 3359 107 2.59

Digirad currently has a consensus target price of $6.00, indicating a potential upside of 166.67%. As a group, “Advanced Medical Equipment & Technology” companies have a potential upside of 0.52%. Given Digirad’s stronger consensus rating and higher possible upside, equities analysts clearly believe Digirad is more favorable than its peers.

Summary

Digirad beats its peers on 11 of the 15 factors compared.

Digirad Company Profile

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.

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