Critical Review: IRIS International (IRIS) versus Quotient (QTNT)

IRIS International (NASDAQ: IRIS) and Quotient (NASDAQ:QTNT) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares IRIS International and Quotient’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IRIS International N/A N/A N/A $0.04 205.00
Quotient $22.23 million 9.63 -$85.06 million ($2.88) -1.63

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

Insider and Institutional Ownership

68.9% of IRIS International shares are held by institutional investors. Comparatively, 47.4% of Quotient shares are held by institutional investors. 9.7% of IRIS International shares are held by insiders. Comparatively, 29.0% of Quotient shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares IRIS International and Quotient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRIS International -61.58% -36.70% -29.47%
Quotient -404.29% -13,050.41% -75.49%

Analyst Recommendations

This is a breakdown of current ratings and price targets for IRIS International and Quotient, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRIS International 0 0 0 0 N/A
Quotient 0 0 2 0 3.00

Quotient has a consensus price target of $12.50, suggesting a potential upside of 165.96%. Given Quotient’s higher possible upside, analysts plainly believe Quotient is more favorable than IRIS International.

Risk & Volatility

IRIS International has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Quotient has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

IRIS International Company Profile

Mitcham Industries, Inc. is a provider of equipment to the geophysical, oceanographic and hydrographic industries. The Company operates through two segments. The Equipment Leasing segment is primarily engaged in the leasing of seismic equipment to companies in the oil and gas industry across the world. The Equipment Manufacturing and Sales segment is engaged in the design, production and sale of marine seismic equipment, and oceanographic and hydrographic equipment. Its leasing business includes Mitcham Canada ULC, Seismic Asia Pacific Pty Ltd., Mitcham Seismic Eurasia LLC, Mitcham Europe Ltd. and Mitcham Marine Leasing Pte. Ltd. The Equipment Manufacturing and Sales Segment includes its Seamap International Holdings Pte, Ltd. (Seamap) business and Klein Marine Systems, Inc. (Klein). Seamap designs, manufactures and sells a range of products for the seismic, hydrographic and offshore industries. Klein develops and manufactures high performance side scan sonar systems.

Quotient Company Profile

Quotient Limited is a diagnostics company. The Company focuses on blood grouping and donor disease screening, which is referred to as transfusion diagnostics. It is engaged in developing, manufacturing and commercializing conventional reagent products used for blood grouping within the global transfusion diagnostics market. It is engaged in developing MosaiQ, which is its technology platform. The Company develops, manufactures and commercializes the products, including antisera products, reagent red blood cells, whole blood controls and ancillary products. Its antisera products contain antibodies used to identify blood group antigens. Its antisera products are monoclonal antibodies manufactured from master cell lines it owns. Its reagent red blood cells products are composed of human red blood cells formulated to enable the identification of blood group antibodies. The Company develops, manufactures and sells conventional reagent products to original equipment manufacturers (OEMs).

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