Head to Head Contrast: RadNet (NASDAQ:RDNT) vs. Fortrea (NASDAQ:FTRE)

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

Analyst Ratings

This is a summary of recent ratings for RadNet and Fortrea, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RadNet	0	0	4	1	3.20
Fortrea	1	11	0	0	1.92

RadNet presently has a consensus price target of $75.50, indicating a potential upside of 22.21%. Fortrea has a consensus price target of $23.30, indicating a potential upside of 54.61%. Given Fortrea’s higher probable upside, analysts clearly believe Fortrea is more favorable than RadNet.

Risk and Volatility

RadNet has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Fortrea has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

77.9% of RadNet shares are held by institutional investors. 5.1% of RadNet shares are held by company insiders. Comparatively, 0.1% of Fortrea 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RadNet	$1.62 billion	2.83	$3.04 million	($0.07)	-882.45
Fortrea	$3.11 billion	0.43	-$3.40 million	($3.42)	-4.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RadNet	-0.25%	4.29%	1.45%
Fortrea	-10.99%	2.00%	0.80%

Summary

RadNet beats Fortrea on 12 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 Fortrea

Fortrea Holdings Inc., a contract research organization, primarily engages in the provision of biopharmaceutical product and medical device development services worldwide. The company operates through two segments: Clinical Services and Enabling Services. The Clinical Services segment provides across the clinical pharmacology and clinical development spectrum. The Enabling Services segment provides patient access and clinical trial technology solutions to customers that streamline complex randomization and optimize the trial drug supply process. The company offers delivery models that include full service, functional service provider, and hybrid service structures. It also offers phase I-IV clinical trial management, differentiated technology enabled trial solutions, and post approval services, as well as consulting services. The company serves pharmaceutical, biotechnology, and medical device organizations. Fortrea Holdings Inc. was incorporated in 2023 and is headquartered in Durham, North Carolina.