Head to Head Analysis: DIAGNOS (OTCMKTS:DGNOF) vs. Fathom (NASDAQ:FTHM)

Fathom (NASDAQ:FTHM) and DIAGNOS (OTCMKTS:DGNOF) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Earnings and Valuation

This table compares Fathom and DIAGNOS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fathom	$335.18 million	0.09	-$21.58 million	($0.81)	-1.14
DIAGNOS	$80,000.00	389.15	-$3.08 million	($0.04)	-6.53

DIAGNOS has lower revenue, but higher earnings than Fathom. DIAGNOS is trading at a lower price-to-earnings ratio than Fathom, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Fathom has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, DIAGNOS has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Fathom and DIAGNOS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fathom	1	0	0	1	2.50
DIAGNOS	0	0	0	0	0.00

Fathom currently has a consensus target price of $2.50, suggesting a potential upside of 171.15%. Given Fathom’s stronger consensus rating and higher probable upside, analysts clearly believe Fathom is more favorable than DIAGNOS.

Profitability

This table compares Fathom and DIAGNOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fathom	-4.70%	-45.99%	-24.74%
DIAGNOS	-5,964.91%	N/A	-188.02%

Institutional and Insider Ownership

55.5% of Fathom shares are held by institutional investors. 16.4% of Fathom shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Fathom beats DIAGNOS on 10 of the 14 factors compared between the two stocks.

About Fathom

Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.

About DIAGNOS

DIAGNOS Inc. provides software-based services primarily in Canada, the United States, Colombia, Spain, Mexico, Saudi Arabia, and Costa Rica. The company offers healthcare services through Computer Assisted Retina Analysis, a web-based software tool that assists healthcare professionals for the detection of diabetic retinopathy; and allows eye care specialist to visualize both normal retinal landmarks and pathological changes. It also provides various consulting services in the fields of data analysis and artificial intelligence. DIAGNOS Inc. was founded in 1998 and is headquartered in Brossard, Canada.