QuidelOrtho (NASDAQ:QDEL) vs. Quipt Home Medical (NASDAQ:QIPT) Critical Contrast

QuidelOrtho (NASDAQ:QDEL) and Quipt Home Medical (NASDAQ:QIPT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for QuidelOrtho and Quipt Home Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuidelOrtho	3	2	1	0	1.67
Quipt Home Medical	2	1	1	0	1.75

QuidelOrtho presently has a consensus target price of $31.50, indicating a potential upside of 113.13%. Quipt Home Medical has a consensus target price of $3.83, indicating a potential upside of 4.79%. Given QuidelOrtho’s higher probable upside, research analysts plainly believe QuidelOrtho is more favorable than Quipt Home Medical.

Institutional and Insider Ownership

99.0% of QuidelOrtho shares are owned by institutional investors. Comparatively, 42.8% of Quipt Home Medical shares are owned by institutional investors. 0.8% of QuidelOrtho shares are owned by insiders. Comparatively, 13.4% of Quipt Home Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares QuidelOrtho and Quipt Home Medical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuidelOrtho	$2.73 billion	0.37	-$1.13 billion	($16.66)	-0.89
Quipt Home Medical	$264.97 million	0.61	-$10.70 million	($0.24)	-15.21

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

Volatility and Risk

QuidelOrtho has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Quipt Home Medical has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares QuidelOrtho and Quipt Home Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuidelOrtho	-41.46%	5.91%	2.37%
Quipt Home Medical	-4.05%	-9.94%	-4.10%

Summary

QuidelOrtho beats Quipt Home Medical on 7 of the 13 factors compared between the two stocks.

About QuidelOrtho

QuidelOrtho Corporation provides diagnostic testing solutions. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides instruments and tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; amplification systems; and sample-to-result molecular instruments and tests for syndromic infectious disease diagnostics. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was incorporated in 1979 and is headquartered in San Diego, California.

About Quipt Home Medical

Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.