Critical Analysis: Fonar (NASDAQ:FONR) versus Organigram Global (NASDAQ:OGI)

Fonar (NASDAQ:FONR) and Organigram Global (NASDAQ:OGI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Risk and Volatility

Fonar has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Organigram Global has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Fonar and Organigram Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fonar	0	1	0	0	2.00
Organigram Global	1	0	2	0	2.33

Institutional and Insider Ownership

50.6% of Fonar shares are held by institutional investors. Comparatively, 34.6% of Organigram Global shares are held by institutional investors. 1.6% of Fonar shares are held by company insiders. Comparatively, 0.1% of Organigram Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fonar	7.13%	4.69%	3.48%
Organigram Global	6.03%	-15.41%	-10.49%

Valuation & Earnings

This table compares Fonar and Organigram Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fonar	$106.03 million	1.10	$8.33 million	$1.13	16.71
Organigram Global	$185.07 million	1.06	-$17.70 million	$0.14	9.93

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

Summary

Fonar beats Organigram Global on 9 of the 13 factors compared between the two stocks.

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.

About Organigram Global

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.