Head to Head Review: RadNet (NASDAQ:RDNT) versus Option Care Health (NASDAQ:OPCH)

RadNet (NASDAQ:RDNT) and Option Care Health (NASDAQ:OPCH) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for RadNet and Option Care Health, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	1	1	6	2	2.90
Option Care Health	0	3	8	1	2.83

RadNet currently has a consensus price target of $88.14, suggesting a potential upside of 50.31%. Option Care Health has a consensus price target of $31.25, suggesting a potential upside of 52.81%. Given Option Care Health’s higher probable upside, analysts plainly believe Option Care Health is more favorable than RadNet.

Risk & Volatility

RadNet has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Option Care Health has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares RadNet and Option Care Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.91%	2.52%	0.88%
Option Care Health	3.64%	18.17%	7.16%

Insider and Institutional Ownership

77.9% of RadNet shares are held by institutional investors. Comparatively, 98.1% of Option Care Health shares are held by institutional investors. 5.6% of RadNet shares are held by insiders. Comparatively, 1.7% of Option Care Health shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares RadNet and Option Care Health”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$2.04 billion	2.25	-$18.65 million	($0.25)	-234.56
Option Care Health	$5.65 billion	0.57	$207.59 million	$1.29	15.85

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

Summary

Option Care Health beats RadNet on 10 of the 15 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 Option Care Health

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.