QuidelOrtho (NASDAQ:QDEL – Get Free Report) and iRhythm Technologies (NASDAQ:IRTC – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for QuidelOrtho and iRhythm Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QuidelOrtho | 3 | 3 | 0 | 0 | 1.50 |
| iRhythm Technologies | 1 | 1 | 12 | 2 | 2.94 |
QuidelOrtho currently has a consensus price target of $13.62, suggesting a potential upside of 15.66%. iRhythm Technologies has a consensus price target of $179.93, suggesting a potential upside of 61.47%. Given iRhythm Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe iRhythm Technologies is more favorable than QuidelOrtho.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QuidelOrtho | $2.73 billion | 0.30 | -$1.13 billion | ($15.41) | -0.76 |
| iRhythm Technologies | $747.14 million | 4.92 | -$44.55 million | ($0.43) | -259.14 |
iRhythm Technologies has lower revenue, but higher earnings than QuidelOrtho. iRhythm Technologies is trading at a lower price-to-earnings ratio than QuidelOrtho, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
QuidelOrtho has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, iRhythm Technologies has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Institutional & Insider Ownership
99.0% of QuidelOrtho shares are held by institutional investors. 1.1% of QuidelOrtho shares are held by company insiders. Comparatively, 1.0% of iRhythm Technologies shares are held by company 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.
Profitability
This table compares QuidelOrtho and iRhythm Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QuidelOrtho | -39.20% | 4.88% | 1.63% |
| iRhythm Technologies | -1.69% | 10.11% | 1.53% |
Summary
iRhythm Technologies beats QuidelOrtho on 10 of the 15 factors compared between the two stocks.
About QuidelOrtho
QuidelOrtho Corporation provides diagnostic testing solutions. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides instruments and tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; amplification systems; and sample-to-result molecular instruments and tests for syndromic infectious disease diagnostics. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was incorporated in 1979 and is headquartered in San Diego, California.
About iRhythm Technologies
iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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