Digirad (DRAD) & Its Peers Financial Comparison

Digirad (NASDAQ: DRAD) is one of 78 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it contrast to its rivals? We will compare Digirad to related businesses based on the strength of its dividends, risk, analyst recommendations, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Digirad and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digirad -9.93% 9.82% 6.02%
Digirad Competitors -326.08% -24.11% -10.01%

Institutional and Insider Ownership

53.1% of Digirad shares are held by institutional investors. Comparatively, 51.8% of shares of all “Advanced Medical Equipment & Technology” companies are held by institutional investors. 11.9% of Digirad shares are held by company insiders. Comparatively, 18.2% of shares of all “Advanced Medical Equipment & Technology” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Digirad has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Digirad’s rivals have a beta of 1.22, suggesting that their average share price is 22% more volatile than the S&P 500.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 9.6%. Digirad pays out -37.9% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.9% and pay out 26.8% of their earnings in the form of a dividend. Digirad is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for Digirad and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digirad 0 0 1 0 3.00
Digirad Competitors 273 1855 3363 106 2.59

Digirad currently has a consensus price target of $6.00, indicating a potential upside of 160.87%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 8.03%. Given Digirad’s stronger consensus rating and higher possible upside, analysts clearly believe Digirad is more favorable than its rivals.

Earnings & Valuation

This table compares Digirad and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Digirad $125.47 million $14.30 million -3.97
Digirad Competitors $2.14 billion $234.27 million -31.56

Digirad’s rivals have higher revenue and earnings than Digirad. Digirad is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Digirad beats its rivals on 11 of the 15 factors compared.

About Digirad

Digirad Corporation provides healthcare solutions. The Company’s segments include Diagnostic Services, Mobile Healthcare, Diagnostic Imaging and Medical Device Sales and Services. Through Diagnostic Services, the Company offers an imaging services program as an alternative to purchasing equipment or outsourcing the procedures to another physician or imaging center. Through Mobile Healthcare segment, the Company provides contract sales services and diagnostic imaging services. Through Diagnostic Imaging segment, the Company sells its internally developed solid-state gamma camera imaging systems and camera maintenance contracts. Through Medical Device Sales and Services segment, the Company provides contract sales services, as well as warranty and post-warranty services, under contract with Philips Healthcare within a defined region in the upper Midwest region of the United States.

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