Financial Survey: RadNet (NASDAQ:RDNT) vs. CorVel (NASDAQ:CRVL)

RadNet (NASDAQ:RDNT) and CorVel (NASDAQ:CRVL) are both mid-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility & Risk

RadNet has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, CorVel has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

77.9% of RadNet shares are held by institutional investors. Comparatively, 51.4% of CorVel shares are held by institutional investors. 5.1% of RadNet shares are held by company insiders. Comparatively, 39.7% of CorVel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$2.04 billion	2.92	-$18.65 million	($0.29)	-260.80
CorVel	$958.53 million	4.58	$110.34 million	$2.38	36.66

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RadNet and CorVel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	1	1	6	1	2.78
CorVel	0	1	0	0	2.00

RadNet presently has a consensus price target of $90.43, suggesting a potential upside of 19.56%. Given RadNet’s stronger consensus rating and higher possible upside, equities analysts clearly believe RadNet is more favorable than CorVel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.94%	3.14%	1.08%
CorVel	12.02%	30.20%	18.06%

Summary

CorVel beats RadNet on 8 of the 15 factors compared between the two stocks.

About RadNet

RadNet, Inc. operates outpatient diagnostic imaging centers in the United States. Its centers provide services including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), mammography, ultrasound, X-ray and nuclear medicine imaging. The company serves patients, physicians and healthcare organizations, with operations across several states, including California, Delaware, Florida, Maryland, New Jersey and New York. Its imaging centers offer diagnostic services for a range of medical needs, from routine screening to specialized examinations.

About CorVel

CorVel Corporation provides workers’ compensation and healthcare cost-management services to employers, insurers, and public entities. Its offerings are designed to help clients manage claims, coordinate care, and control healthcare-related costs. The company’s services include claims administration, medical bill review, provider network access, utilization review, case management, and pharmacy benefit management. CorVel also supports disability and liability claims management. Founded in 1987, CorVel serves customers across the United States through a combination of technology platforms and service teams.