CorVel (NASDAQ:CRVL – Get Free Report) and RadNet (NASDAQ:RDNT – Get Free Report) are both mid-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Profitability
This table compares CorVel and RadNet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 12.02% | 30.20% | 18.06% |
| RadNet | -0.94% | 3.14% | 1.08% |
Volatility and Risk
CorVel has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Insider & Institutional Ownership
51.4% of CorVel shares are owned by institutional investors. Comparatively, 77.9% of RadNet shares are owned by institutional investors. 39.7% of CorVel shares are owned by company insiders. Comparatively, 5.1% of RadNet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for CorVel and RadNet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
| RadNet | 1 | 0 | 6 | 2 | 3.00 |
RadNet has a consensus price target of $90.43, indicating a potential upside of 16.02%. Given RadNet’s stronger consensus rating and higher possible upside, analysts plainly believe RadNet is more favorable than CorVel.
Earnings & Valuation
This table compares CorVel and RadNet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $958.53 million | 4.39 | $110.34 million | $2.38 | 35.14 |
| RadNet | $2.04 billion | 3.01 | -$18.65 million | ($0.27) | -288.67 |
CorVel has higher earnings, but lower revenue 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.
Summary
CorVel beats RadNet on 8 of the 15 factors compared between the two stocks.
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.
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.
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