CorVel (NASDAQ:CRVL – Get Free Report) and RadNet (NASDAQ:RDNT – Get Free Report) are both mid-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for CorVel and RadNet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
| RadNet | 1 | 0 | 5 | 3 | 3.11 |
RadNet has a consensus price target of $90.00, indicating a potential upside of 18.42%. Given RadNet’s stronger consensus rating and higher possible upside, analysts clearly believe RadNet is more favorable than CorVel.
Valuation & Earnings
This table compares CorVel and RadNet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $1.01 billion | 4.19 | $110.34 million | $2.38 | 34.94 |
| RadNet | $2.27 billion | 2.64 | -$18.65 million | ($0.27) | -281.48 |
CorVel has higher earnings, but lower revenue than RadNet. RadNet is trading at a lower price-to-earnings ratio than CorVel, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
51.4% of CorVel shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 39.7% of CorVel 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, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares CorVel and RadNet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 12.02% | 30.20% | 18.06% |
| RadNet | -0.93% | 2.61% | 0.91% |
Volatility & Risk
CorVel has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Summary
CorVel beats RadNet on 8 of the 15 factors compared between the two stocks.
About CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
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.
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