Dynatronics Corporation (NASDAQ:DYNT) & Cynosure (CYNO) Critical Review

Cynosure (NASDAQ: CYNO) and Dynatronics Corporation (NASDAQ:DYNT) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cynosure and Dynatronics Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cynosure 0 3 3 0 2.50
Dynatronics Corporation 0 0 0 0 N/A

Cynosure currently has a consensus target price of $58.33, suggesting a potential downside of 11.58%. Given Cynosure’s higher probable upside, equities analysts clearly believe Cynosure is more favorable than Dynatronics Corporation.

Institutional & Insider Ownership

17.5% of Dynatronics Corporation shares are held by institutional investors. 2.9% of Cynosure shares are held by insiders. Comparatively, 47.6% of Dynatronics Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Cynosure and Dynatronics Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cynosure N/A N/A N/A $0.65 101.49
Dynatronics Corporation $35.76 million 0.32 -$836,282.00 ($1.24) -1.94

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

Risk and Volatility

Cynosure has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Dynatronics Corporation has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

Profitability

This table compares Cynosure and Dynatronics Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cynosure 0.70% 0.75% 0.59%
Dynatronics Corporation -5.47% -88.57% -9.59%

Summary

Cynosure beats Dynatronics Corporation on 7 of the 10 factors compared between the two stocks.

About Cynosure

Cynosure, Inc. develops, manufactures and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, reduce fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve women’s health. The Company also markets radiofrequency (RF), energy-sourced medical devices for surgical applications, such as facial plastic and general surgery, gynecology, ear, nose, and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. The Company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names. Its product portfolio includes single energy source systems, as well as workstations that incorporate two or more different types of lasers or light-based technologies.

About Dynatronics Corporation

Dynatronics Corporation is a manufacturer and distributor of physical medicine products. The Company’s products include a line of medical equipment for physical medicine applications, including therapy devices, medical supplies and soft goods, treatment tables and rehabilitation equipment. Its products are used by physical therapists, chiropractors, sports medicine practitioners, podiatrists, physicians and other physical medicine professionals. Its physical medicine products include therapeutic modalities, such as Dynatron Solaris, including electrotherapy and thermal therapy, and 25 Series, including electrotherapy and ultrasound; manufactured capital products, including traction systems and wood furniture; manufactured supplies, including cold packs, straps, wedges, bolsters and mats; distributed capital products, including hydrotherapy, weight training equipment and pilates, and distributed supplies, including clinical accessories, sports med and taping products, lotions and gels.

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