RadNet (NASDAQ:RDNT – Get Free Report) and Ontrak (NASDAQ:OTRK – Get Free Report) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares RadNet and Ontrak’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadNet | -1.73% | 1.41% | 0.48% |
| Ontrak | -274.20% | -269.88% | -128.35% |
Insider & Institutional Ownership
77.9% of RadNet shares are owned by institutional investors. Comparatively, 13.0% of Ontrak shares are owned by institutional investors. 5.6% of RadNet shares are owned by insiders. Comparatively, 1.9% of Ontrak shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RadNet | $1.83 billion | 2.54 | $2.79 million | ($0.43) | -144.19 |
| Ontrak | $10.85 million | 0.14 | -$25.49 million | ($15.81) | -0.02 |
RadNet has higher revenue and earnings than Ontrak. RadNet is trading at a lower price-to-earnings ratio than Ontrak, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for RadNet and Ontrak, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadNet | 0 | 0 | 4 | 3 | 3.43 |
| Ontrak | 0 | 0 | 1 | 0 | 3.00 |
RadNet currently has a consensus target price of $69.60, indicating a potential upside of 12.26%. Ontrak has a consensus target price of $3.00, indicating a potential upside of 721.92%. Given Ontrak’s higher probable upside, analysts clearly believe Ontrak is more favorable than RadNet.
Risk and Volatility
RadNet has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Ontrak has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.
Summary
RadNet beats Ontrak on 12 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 Ontrak
Ontrak, Inc. operates as an artificial intelligence powered, telehealth-enabled, and virtualized healthcare company that provides in-person services to third-party payors in the United States. Its technology-enabled platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages and guides them to and through the care they need. The company's technology enabled OnTrak program provides healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions, such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators, who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. Ontrak, Inc. was incorporated in 2003 and is headquartered in Miami, Florida.
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