Head to Head Comparison: RadNet (NASDAQ:RDNT) versus Aveanna Healthcare (NASDAQ:AVAH)

Aveanna Healthcare (NASDAQ:AVAH) and RadNet (NASDAQ:RDNT) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings & Valuation

This table compares Aveanna Healthcare and RadNet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aveanna Healthcare	$2.02 billion	0.73	-$10.93 million	$0.08	88.00
RadNet	$1.83 billion	2.79	$2.79 million	($0.20)	-331.45

RadNet has lower revenue, but higher earnings than Aveanna Healthcare. RadNet is trading at a lower price-to-earnings ratio than Aveanna Healthcare, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

88.0% of Aveanna Healthcare shares are held by institutional investors. Comparatively, 77.9% of RadNet shares are held by institutional investors. 7.0% of Aveanna Healthcare shares are held by insiders. Comparatively, 5.6% of RadNet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aveanna Healthcare and RadNet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aveanna Healthcare	1	2	2	0	2.20
RadNet	0	0	4	3	3.43

Aveanna Healthcare currently has a consensus target price of $6.45, indicating a potential downside of 8.38%. RadNet has a consensus target price of $71.60, indicating a potential upside of 8.01%. Given RadNet’s stronger consensus rating and higher possible upside, analysts clearly believe RadNet is more favorable than Aveanna Healthcare.

Profitability

This table compares Aveanna Healthcare and RadNet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aveanna Healthcare	0.85%	-54.56%	3.17%
RadNet	-0.78%	2.41%	0.82%

Risk & Volatility

Aveanna Healthcare has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, RadNet has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Summary

Aveanna Healthcare beats RadNet on 8 of the 15 factors compared between the two stocks.

About Aveanna Healthcare

Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals or skilled nursing facilities. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children and adults; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products, including formulas, supplies, and pumps to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

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.