Contrasting RadNet (NASDAQ:RDNT) & Fortrea (NASDAQ:FTRE)

Fortrea (NASDAQ:FTRE) and RadNet (NASDAQ:RDNT) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares Fortrea and RadNet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortrea	$3.11 billion	0.43	-$3.40 million	($3.42)	-4.36
RadNet	$1.62 billion	2.87	$3.04 million	($0.07)	-896.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fortrea	-10.99%	2.00%	0.80%
RadNet	-0.25%	4.29%	1.45%

Risk & Volatility

Fortrea has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fortrea and RadNet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortrea	1	11	0	0	1.92
RadNet	0	0	4	1	3.20

Fortrea presently has a consensus target price of $23.30, indicating a potential upside of 56.27%. RadNet has a consensus target price of $75.50, indicating a potential upside of 20.28%. Given Fortrea’s higher possible upside, equities research analysts plainly believe Fortrea is more favorable than RadNet.

Institutional and Insider Ownership

77.9% of RadNet shares are held by institutional investors. 0.1% of Fortrea shares are held by company insiders. Comparatively, 5.1% of RadNet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

RadNet beats Fortrea on 12 of the 15 factors compared between the two stocks.

About Fortrea

Fortrea Holdings Inc., a contract research organization, primarily engages in the provision of biopharmaceutical product and medical device development services worldwide. The company operates through two segments: Clinical Services and Enabling Services. The Clinical Services segment provides across the clinical pharmacology and clinical development spectrum. The Enabling Services segment provides patient access and clinical trial technology solutions to customers that streamline complex randomization and optimize the trial drug supply process. The company offers delivery models that include full service, functional service provider, and hybrid service structures. It also offers phase I-IV clinical trial management, differentiated technology enabled trial solutions, and post approval services, as well as consulting services. The company serves pharmaceutical, biotechnology, and medical device organizations. Fortrea Holdings Inc. was incorporated in 2023 and is headquartered in Durham, North Carolina.

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.