Biolase (BIOL) versus IRIDEX Corporation (IRIX) Head to Head Contrast

Biolase (NASDAQ: BIOL) and IRIDEX Corporation (NASDAQ:IRIX) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Biolase has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, IRIDEX Corporation has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

37.3% of Biolase shares are held by institutional investors. Comparatively, 47.5% of IRIDEX Corporation shares are held by institutional investors. 7.1% of Biolase shares are held by company insiders. Comparatively, 5.0% of IRIDEX Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Biolase and IRIDEX Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Biolase -31.64% -64.44% -35.66%
IRIDEX Corporation -37.62% -16.87% -13.86%

Valuation & Earnings

This table compares Biolase and IRIDEX Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Biolase $50.48 million 1.01 -$14.68 million ($0.32) -2.11
IRIDEX Corporation $42.80 million 2.25 -$5.81 million ($1.51) -5.52

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

Analyst Ratings

This is a breakdown of current recommendations for Biolase and IRIDEX Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biolase 0 0 1 0 3.00
IRIDEX Corporation 0 0 1 0 3.00

Biolase presently has a consensus target price of $2.50, indicating a potential upside of 270.92%. IRIDEX Corporation has a consensus target price of $20.00, indicating a potential upside of 140.10%. Given Biolase’s higher probable upside, research analysts clearly believe Biolase is more favorable than IRIDEX Corporation.

Summary

Biolase beats IRIDEX Corporation on 6 of the 11 factors compared between the two stocks.

Biolase Company Profile

BIOLASE, Inc. (BIOLASE) is a medical device company that develops, manufactures, markets and sells laser systems in dentistry and medicine. The Company markets, sells, and distributes dental imaging equipment, including cone beam digital x-rays and computer-aided design (CAD)/computer-aided manufacturing (CAM) intra-oral scanners, in-office, chair-side milling machines and three-dimensional (3-D) printers. It offers two categories of laser system products: WaterLase (all-tissue) systems and Diode (soft tissue) systems. Its brand, WaterLase, uses a combination of water and laser energy to perform procedures performed using drills, scalpels, and other traditional dental instruments for cutting soft and hard tissue. It also offers its Diode laser systems to perform soft tissue, pain therapy, and cosmetic procedures, including teeth whitening. Its Waterlase and Diode systems use disposable laser tips of differing sizes and shapes depending on the procedures being performed.

IRIDEX Corporation Company Profile

IRIDEX Corporation is a provider of therapeutic based laser consoles, delivery devices and consumable instrumentation used to treat sight-threatening eye diseases in ophthalmology. The Company operates through ophthalmology segment. Its ophthalmology products consist of laser consoles, delivery devices and consumable instrumentation, including laser probes, and are used in the treatment of serious eye diseases, including the over three causes of irreversible blindness, such as diabetic retinopathy, glaucoma and age-related macular degeneration (AMD). In addition, the Company’s ophthalmology products are often used in vitrectomy procedures (used to treat proliferative diabetic retinopathy, macular holes, retinal tears and detachments), which are generally performed in the operating room and require a consumable single use intraocular laser probe (EndoProbe) to deliver light to the back of the eye together with other instrumentation.

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