Comparing Derma Sciences (DSCI) & Digirad (DRAD)

Derma Sciences (NASDAQ: DSCI) and Digirad (NASDAQ:DRAD) are both healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Dividends

Digirad pays an annual dividend of $0.22 per share and has a dividend yield of 9.6%. Derma Sciences does not pay a dividend. Digirad pays out -37.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Derma Sciences and Digirad’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Derma Sciences N/A N/A N/A ($0.31) N/A
Digirad $125.47 million 0.37 $14.30 million ($0.58) -3.97

Digirad has higher revenue and earnings than Derma Sciences. Digirad is trading at a lower price-to-earnings ratio than Derma Sciences, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

58.9% of Derma Sciences shares are held by institutional investors. Comparatively, 53.5% of Digirad shares are held by institutional investors. 9.9% of Derma Sciences shares are held by company insiders. Comparatively, 11.9% of Digirad shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Derma Sciences and Digirad’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Derma Sciences -20.97% -17.10% -12.43%
Digirad -9.93% 9.82% 6.02%

Analyst Ratings

This is a breakdown of current recommendations for Derma Sciences and Digirad, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Derma Sciences 0 0 0 0 N/A
Digirad 0 0 1 0 3.00

Digirad has a consensus target price of $6.00, indicating a potential upside of 160.87%.

Summary

Digirad beats Derma Sciences on 9 of the 11 factors compared between the two stocks.

Derma Sciences Company Profile

Derma Sciences, Inc. (Derma Sciences) is a medical device company. The Company operates through two segments: advanced wound care and traditional wound care products. Advanced wound care products principally consist of both novel and otherwise differentiated dressings, devices and skin substitutes designed to promote wound healing and/or prevent infection. The Company’s advanced wound care product line consists of MEDIHONEY, TCC-EZ, AMNIOEXCEL and AMNIOMATRIX, XTRASORB and BIOGUARD. Traditional wound care products principally consist of commodity related dressings, ointments, gauze bandages, adhesive bandages, wound closure strips, catheter fasteners and skin care products. The Company’s traditional wound care product line includes branded gauze sponges and bandages, non-adherent impregnated dressings, retention devices, paste bandages and other compression devices for the medical markets.

Digirad Company Profile

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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