Fonar (NASDAQ:FONR) & Abbott Laboratories (NYSE:ABT) Financial Comparison

Abbott Laboratories (NYSE:ABT) and Fonar (NASDAQ:FONR) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

75.2% of Abbott Laboratories shares are held by institutional investors. Comparatively, 50.6% of Fonar shares are held by institutional investors. 0.5% of Abbott Laboratories shares are held by company insiders. Comparatively, 1.6% 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.

Earnings and Valuation

This table compares Abbott Laboratories and Fonar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abbott Laboratories	$41.95 billion	5.49	$13.40 billion	$7.98	16.58
Fonar	$103.02 million	0.91	$10.57 million	$1.25	12.10

Abbott Laboratories has higher revenue and earnings than Fonar. Fonar is trading at a lower price-to-earnings ratio than Abbott Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Abbott Laboratories and Fonar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abbott Laboratories	0	4	16	2	2.91
Fonar	0	0	0	0	0.00

Abbott Laboratories presently has a consensus target price of $144.4737, suggesting a potential upside of 9.20%. Given Abbott Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Abbott Laboratories is more favorable than Fonar.

Profitability

This table compares Abbott Laboratories and Fonar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abbott Laboratories	32.43%	18.32%	10.71%
Fonar	8.19%	5.31%	3.97%

Risk & Volatility

Abbott Laboratories has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Fonar has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Summary

Abbott Laboratories beats Fonar on 13 of the 15 factors compared between the two stocks.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

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.