biote (NASDAQ:BTMD – Get Free Report) and Fonar (NASDAQ:FONR – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Risk and Volatility
biote has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Fonar has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Insider and Institutional Ownership
21.7% of biote shares are held by institutional investors. Comparatively, 50.6% of Fonar shares are held by institutional investors. 24.0% of biote shares are held by insiders. Comparatively, 1.6% of Fonar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| biote | 1 | 1 | 1 | 0 | 2.00 |
| Fonar | 0 | 1 | 0 | 0 | 2.00 |
biote currently has a consensus price target of $5.67, indicating a potential upside of 133.20%. Given biote’s higher possible upside, analysts plainly believe biote is more favorable than Fonar.
Earnings & Valuation
This table compares biote and Fonar”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| biote | $195.65 million | 0.57 | $3.16 million | $0.79 | 3.08 |
| Fonar | $105.43 million | 1.09 | $8.33 million | $1.11 | 16.76 |
Fonar has lower revenue, but higher earnings than biote. biote is trading at a lower price-to-earnings ratio than Fonar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares biote and Fonar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| biote | 14.72% | -21.86% | 15.68% |
| Fonar | 7.08% | 4.66% | 3.48% |
Summary
biote beats Fonar on 7 of the 13 factors compared between the two stocks.
About biote
biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.
About Fonar
FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates in two segments, Medical Equipment, and Physician Management and Diagnostic Services. 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 also offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters, and development and implementation of practice growth and marketing strategies. It owns and operates diagnostic imaging facilities in Florida; and manages MRI scanning facilities. The company markets its scanners to private diagnostic imaging centers and hospital outpatient imaging facilities. FONAR Corporation was founded in 1970 and is based in Melville, New York.
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