Financial Analysis: Elanco Animal Health (NYSE:ELAN) vs. RadNet (NASDAQ:RDNT)

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

Profitability

This table compares RadNet and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.78%	2.41%	0.82%
Elanco Animal Health	9.68%	7.04%	3.45%

Valuation & Earnings

This table compares RadNet and Elanco Animal Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$1.83 billion	3.28	$2.79 million	($0.20)	-389.95
Elanco Animal Health	$4.44 billion	2.33	$338.00 million	$0.86	24.20

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

Institutional & Insider Ownership

77.9% of RadNet shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 5.6% of RadNet shares are owned by insiders. Comparatively, 0.9% of Elanco Animal Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

RadNet has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for RadNet and Elanco Animal Health, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	0	1	4	3	3.25
Elanco Animal Health	0	3	5	1	2.78

RadNet presently has a consensus target price of $76.80, indicating a potential downside of 1.53%. Elanco Animal Health has a consensus target price of $18.33, indicating a potential downside of 11.91%. Given RadNet’s stronger consensus rating and higher probable upside, analysts clearly believe RadNet is more favorable than Elanco Animal Health.

Summary

Elanco Animal Health beats RadNet on 10 of the 15 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 Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.