Quipt Home Medical (NASDAQ:QIPT – Get Free Report) and Fonar (NASDAQ:FONR – Get Free Report) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Quipt Home Medical has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Fonar has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Quipt Home Medical and Fonar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quipt Home Medical | 0 | 1 | 1 | 0 | 2.50 |
| Fonar | 0 | 0 | 0 | 0 | 0.00 |
Insider & Institutional Ownership
42.9% of Quipt Home Medical shares are held by institutional investors. Comparatively, 50.6% of Fonar shares are held by institutional investors. 13.4% of Quipt Home Medical shares are held by insiders. Comparatively, 1.6% of Fonar shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Quipt Home Medical and Fonar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quipt Home Medical | -4.30% | -9.78% | -4.23% |
| Fonar | 8.19% | 5.31% | 3.97% |
Valuation & Earnings
This table compares Quipt Home Medical and Fonar”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quipt Home Medical | $245.91 million | 0.37 | -$6.76 million | ($0.24) | -8.83 |
| Fonar | $102.88 million | 0.92 | $10.57 million | $1.25 | 12.18 |
Fonar has lower revenue, but higher earnings than Quipt Home Medical. Quipt Home Medical is trading at a lower price-to-earnings ratio than Fonar, indicating that it is currently the more affordable of the two stocks.
Summary
Fonar beats Quipt Home Medical on 9 of the 14 factors compared between the two stocks.
About Quipt Home Medical
Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.
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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