RadNet (NASDAQ:RDNT – Get Free Report) and CorVel (NASDAQ:CRVL – Get Free Report) are both mid-cap healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Risk and Volatility
RadNet has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, CorVel has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Earnings & Valuation
This table compares RadNet and CorVel”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RadNet | $2.27 billion | 2.64 | -$18.65 million | ($0.27) | -281.48 |
| CorVel | $1.01 billion | 4.19 | $110.34 million | $2.38 | 34.94 |
CorVel has lower revenue, but higher earnings 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.
Institutional and Insider Ownership
77.9% of RadNet shares are held by institutional investors. Comparatively, 51.4% of CorVel shares are held by institutional investors. 5.1% of RadNet shares are held by insiders. Comparatively, 39.7% of CorVel shares are held by 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.
Profitability
This table compares RadNet and CorVel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RadNet | -0.93% | 2.61% | 0.91% |
| CorVel | 12.02% | 30.20% | 18.06% |
Analyst Ratings
This is a breakdown of current ratings and target prices for RadNet and CorVel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RadNet | 1 | 0 | 5 | 3 | 3.11 |
| CorVel | 0 | 1 | 0 | 0 | 2.00 |
RadNet presently has a consensus price target of $90.00, suggesting a potential upside of 18.42%. Given RadNet’s stronger consensus rating and higher possible upside, research analysts clearly believe RadNet is more favorable than CorVel.
Summary
CorVel beats RadNet on 8 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 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.
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