Analyzing RadNet (NASDAQ:RDNT) and Akumin (NASDAQ:AKUMQ)

RadNet (NASDAQ:RDNT) and Akumin (NASDAQ:AKUMQ) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility & Risk

RadNet has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, Akumin has a beta of -1.02, indicating that its share price is 202% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for RadNet and Akumin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	0	1	2	0	2.67
Akumin	0	0	0	0	N/A

RadNet presently has a consensus price target of $53.67, suggesting a potential upside of 10.27%. Given RadNet’s higher possible upside, analysts plainly believe RadNet is more favorable than Akumin.

Insider & Institutional Ownership

77.9% of RadNet shares are owned by institutional investors. Comparatively, 36.1% of Akumin shares are owned by institutional investors. 4.4% of RadNet shares are owned by company insiders. Comparatively, 20.5% of Akumin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares RadNet and Akumin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RadNet	0.19%	4.72%	1.29%
Akumin	-34.67%	-1,249.92%	-8.42%

Earnings & Valuation

This table compares RadNet and Akumin’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$1.62 billion	2.06	$3.04 million	($0.02)	-2,432.28
Akumin	$749.63 million	0.05	-$156.76 million	($2.82)	-0.13

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

Summary

RadNet beats Akumin on 11 of the 13 factors compared between the two stocks.

About RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

About Akumin

Akumin Inc. provides outpatient diagnostic imaging services in the United States. It operates in two segments, Radiology and Oncology. The company offers various medical imaging services, including magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other diagnostic and interventional radiology procedures through owned and/or operated imaging locations. It provides outpatient radiology, and oncology services and solutions to hospitals and health systems across 48 states. Akumin Inc. was founded in 2015 and is headquartered in Plantation, Florida. On October 22, 2023, Akumin Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.