Head-To-Head Survey: Fonar (NASDAQ:FONR) vs. Shandong Weigao Medical Polymer (OTCMKTS:SHWGF)

Shandong Weigao Medical Polymer (OTCMKTS:SHWGF) and Fonar (NASDAQ:FONR) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Shandong Weigao Medical Polymer and Fonar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shandong Weigao Medical Polymer	0	0	0	0	0.00
Fonar	0	1	0	0	2.00

Risk and Volatility

Shandong Weigao Medical Polymer has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500. Comparatively, Fonar has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Shandong Weigao Medical Polymer and Fonar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shandong Weigao Medical Polymer	$1.82 billion	1.71	$314.90 million	N/A	N/A
Fonar	$104.35 million	0.88	$8.33 million	$1.23	12.07

Shandong Weigao Medical Polymer has higher revenue and earnings than Fonar.

Profitability

This table compares Shandong Weigao Medical Polymer and Fonar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shandong Weigao Medical Polymer	N/A	N/A	N/A
Fonar	7.99%	5.22%	3.91%

Institutional and Insider Ownership

50.6% of Fonar shares are held by institutional investors. 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 is poised for long-term growth.

Summary

Fonar beats Shandong Weigao Medical Polymer on 7 of the 10 factors compared between the two stocks.

About Shandong Weigao Medical Polymer

Shandong Weigao Group Medical Polymer Company Limited engages in the research and development, production, wholesale, and sale of medical devices in the People’s Republic of China. It operates through Medical Device Products, Orthopaedic Products, Interventional Products, Pharma Packaging Products, Blood Management Products, and Others segments. The company offers single use medical consumables and materials, including infusion sets, syringes, blood bags and blood component segregators consumable, blood sampling products, prefilled syringes for pre-pack medication and medical needles which mainly include intravenous needles, syringe needles, intravenous catheter needles, blood sampling needles and irregular needles; orthopedic materials and instruments, including trauma products of steel plates and screws, spinal implants, and artificial joints; and blood purification consumables and equipment, including puncture needles, extracorporeal blood circuit for blood purification sets, dialyzers and related consumables. It also provides tumour and blood vessel interventional instruments; flushing syringes; blood collection, irradiation, storage, separation and sterilization products; implantation materials and artificial organs; medical PVC granules, plastic packing bags, and carton boxes; medical polymer materials and products; injection puncture Instruments; medicines; and X-ray based irradiation machines. In addition, it is involved in the finance leasing and factoring business; provision of enterprise management advisory services, logistics and storage, and computer technical services; and sale of electronic products. The company was incorporated in 2000 and is based in Weihai, the People’s Republic of China.

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.