Head to Head Review: Digirad (DRAD) and Its Competitors

Digirad (NASDAQ: DRAD) is one of 79 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its rivals? We will compare Digirad to related businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Digirad and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Digirad $125.47 million $14.30 million -3.83
Digirad Competitors $2.14 billion $234.27 million -86.75

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

Risk & Volatility

Digirad has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Digirad’s rivals have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Digirad and its rivals, 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 279 1918 3409 109 2.59

Digirad currently has a consensus price target of $6.00, indicating a potential upside of 170.27%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 0.37%. Given Digirad’s stronger consensus rating and higher probable upside, research analysts plainly believe Digirad is more favorable than its rivals.

Profitability

This table compares Digirad and its rivals’ 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 -152.07% -22.81% -8.97%

Insider & Institutional Ownership

53.1% of Digirad shares are held by institutional investors. Comparatively, 51.7% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 11.9% of Digirad shares are held by insiders. Comparatively, 18.4% of shares of all “Advanced Medical Equipment & Technology” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 9.9%. 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 28.4% of their earnings in the form of a dividend. Digirad is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

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

About Digirad

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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