iRadimed (NASDAQ:IRMD) and Sysmex (OTCMKTS:SSMXY) Critical Analysis

iRadimed (NASDAQ:IRMD) and Sysmex (OTCMKTS:SSMXY) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

iRadimed has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Sysmex has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares iRadimed and Sysmex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRadimed	$83.81 million	13.82	$22.48 million	$1.83	49.54
Sysmex	$3.32 billion	1.65	$235.54 million	$0.38	22.95

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

Dividends

iRadimed pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Sysmex pays an annual dividend of $0.14 per share and has a dividend yield of 1.6%. iRadimed pays out 43.7% of its earnings in the form of a dividend. Sysmex pays out 36.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. iRadimed has raised its dividend for 1 consecutive years. Sysmex is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

92.3% of iRadimed shares are held by institutional investors. 36.8% of iRadimed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares iRadimed and Sysmex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iRadimed	27.36%	24.48%	21.25%
Sysmex	7.13%	7.28%	5.24%

Analyst Recommendations

This is a breakdown of current ratings and target prices for iRadimed and Sysmex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRadimed	0	1	3	1	3.00
Sysmex	0	2	1	0	2.33

iRadimed currently has a consensus target price of $120.00, indicating a potential upside of 32.36%. Given iRadimed’s stronger consensus rating and higher possible upside, research analysts clearly believe iRadimed is more favorable than Sysmex.

Summary

iRadimed beats Sysmex on 13 of the 18 factors compared between the two stocks.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.

About Sysmex

Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.