Critical Comparison: Trimedyne (TMED) vs. Fonar (FONR)
Trimedyne (OTCMKTS:TMED) and Fonar (NASDAQ:FONR) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
This table compares Trimedyne and Fonar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Trimedyne and Fonar, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
51.0% of Fonar shares are held by institutional investors. 11.1% of Trimedyne shares are held by company insiders. Comparatively, 3.0% of Fonar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Trimedyne has a beta of -1.2, suggesting that its share price is 220% less volatile than the S&P 500. Comparatively, Fonar has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Earnings and Valuation
This table compares Trimedyne and Fonar’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fonar||$81.52 million||1.58||$21.23 million||N/A||N/A|
Fonar has higher revenue and earnings than Trimedyne.
Fonar beats Trimedyne on 9 of the 10 factors compared between the two stocks.
Trimedyne, Inc. manufactures and sells lasers, and disposable and reusable fiber-optic laser devices for use in the medical field. It offers lasers, fibers, needles, and switch tips for use in orthopedics, urology, ear and nose surgery, throat surgery, gynecology, gastrointestinal surgery, general surgery, and other medical specialties. The company also provides 80 watt and 30 watt holmium lasers, and side firing laser needles to treat herniated or ruptured spinal discs. In addition, it engages in the provision of services, and rental of lasers and other medical equipment to hospitals and surgery centers on a fee-per-case basis. The company operates in Asia, Europe, Latin America, the Middle East, Australia, and internationally. It markets its products through commission sales representatives in the United States and independent distributors internationally. Trimedyne, Inc. was founded in 1980 and is based in Irvine, California.
FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites States. It is involved in the research, development, production, and marketing of medical scanning equipment, which uses principles of MRI for the detection and diagnosis of human diseases, abnormalities, other medical conditions, and injuries. The company operates in two segments, Manufacturing and Servicing of Medical Equipment, and Management of Diagnostic Imaging Centers. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company markets its scanners to private diagnostic imaging centers and hospitals. It also provides non-medical management services, including development, administration, office space leasing, facilities, equipment, supplies, staffing, credentialing, accounting, billing and collection, assistance with compliance matters, and practice growth and marketing strategies development and implementation services, as well as engages in the training and supervision of non-medical personnel for diagnostic imaging facilities. The company also exports its products to the United Arab Emirates, Switzerland, Canada, England, Germany, and Puerto Rico. It owns and operates 4 diagnostic imaging facilities in Florida; and manages 26 MRI scanning facilities, including 19 facilities located in New York and 7 situated in Florida. The company was founded in 1978 and is based in Melville, New York.
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