Analyzing RadNet (NASDAQ:RDNT) and Grail (NASDAQ:GRAL)

RadNet (NASDAQ:RDNT) and Grail (NASDAQ:GRAL) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Earnings & Valuation

This table compares RadNet and Grail”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$1.62 billion	3.74	$3.04 million	($0.07)	-1,167.83
Grail	N/A	N/A	N/A	N/A	N/A

RadNet has higher revenue and earnings than Grail.

Analyst Recommendations

This is a breakdown of current recommendations for RadNet and Grail, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	0	0	4	1	3.20
Grail	0	3	0	0	2.00

RadNet presently has a consensus price target of $78.25, suggesting a potential downside of 4.29%. Grail has a consensus price target of $16.00, suggesting a potential downside of 8.57%. Given RadNet’s stronger consensus rating and higher possible upside, analysts clearly believe RadNet is more favorable than Grail.

Insider & Institutional Ownership

77.9% of RadNet shares are held by institutional investors. 5.1% of RadNet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares RadNet and Grail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.25%	4.29%	1.45%
Grail	N/A	N/A	N/A

Summary

RadNet beats Grail on 9 of the 10 factors compared between the two stocks.

About RadNet

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. The company operates in two segments: Imaging Centers and Artificial Intelligence. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems that distribute, display, store, and retrieve digital images; offers picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of breast, lung, and prostate images, as well as AI solutions for prostate cancer screening. RadNet, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

About Grail

GRAIL, Inc., a biotechnology company, focuses on developing technologies for early cancer detection. The company develops Galleri, a screening test for asymptomatic individuals over 50 years of age; and DAC, a diagnostic aid for cancer tests to accelerate diagnostic resolution for patients for whom there is a clinical suspicion of cancer. It is also developing minimal residual disease and other post-diagnostic tests. The company was incorporated in 2015 and is based in Menlo Park, California. GRAIL, Inc. operates as a former subsidiary of Illumina, Inc.