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

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

Valuation & Earnings

This table compares Akumin and RadNet’s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Profitability

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

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Akumin and RadNet, as provided by MarketBeat.

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

RadNet 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.

Institutional and Insider Ownership

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

Summary

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

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.

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.