iRadimed (NASDAQ:IRMD) and Cochlear (OTCMKTS:CHEOF) Financial Review

Cochlear (OTCMKTS:CHEOF) and iRadimed (NASDAQ:IRMD) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Cochlear and iRadimed”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cochlear	N/A	N/A	N/A	$1.64	58.95
iRadimed	$83.81 million	13.29	$22.48 million	$1.79	48.64

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

Dividends

Cochlear pays an annual dividend of $1.27 per share and has a dividend yield of 1.3%. iRadimed pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Cochlear pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. iRadimed pays out 44.7% of its earnings in the form of a dividend. iRadimed has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cochlear and iRadimed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cochlear	0	0	0	0	0.00
iRadimed	0	2	2	1	2.80

iRadimed has a consensus target price of $120.00, indicating a potential upside of 37.82%. Given iRadimed’s stronger consensus rating and higher probable upside, analysts plainly believe iRadimed is more favorable than Cochlear.

Profitability

This table compares Cochlear and iRadimed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cochlear	N/A	N/A	N/A
iRadimed	26.70%	23.45%	20.36%

Institutional and Insider Ownership

22.5% of Cochlear shares are held by institutional investors. Comparatively, 92.3% of iRadimed shares are held by institutional investors. 34.6% of iRadimed shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

iRadimed beats Cochlear on 13 of the 15 factors compared between the two stocks.

About Cochlear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.

About iRadimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.