iRadimed Corporation (NASDAQ:IRMD) versus Masimo Corporation (MASI) Head-To-Head Survey

Masimo Corporation (NASDAQ: MASI) and iRadimed Corporation (NASDAQ:IRMD) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Masimo Corporation and iRadimed Corporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Masimo Corporation	0	4	3	0	2.43
iRadimed Corporation	0	1	0	0	2.00

Masimo Corporation presently has a consensus target price of $87.40, indicating a potential downside of 9.30%. iRadimed Corporation has a consensus target price of $11.50, indicating a potential upside of 17.35%. Given iRadimed Corporation’s higher probable upside, analysts clearly believe iRadimed Corporation is more favorable than Masimo Corporation.

Valuation and Earnings

This table compares Masimo Corporation and iRadimed Corporation’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Masimo Corporation	$709.76 million	6.94	$171.03 million	$5.88	16.39
iRadimed Corporation	$24.35 million	4.30	$4.51 million	$0.24	40.84

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

Volatility and Risk

Masimo Corporation has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, iRadimed Corporation has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Institutional and Insider Ownership

83.6% of Masimo Corporation shares are held by institutional investors. Comparatively, 17.3% of iRadimed Corporation shares are held by institutional investors. 16.6% of Masimo Corporation shares are held by insiders. Comparatively, 60.1% of iRadimed Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Masimo Corporation	44.86%	24.19%	15.00%
iRadimed Corporation	16.38%	15.28%	13.20%

Summary

Masimo Corporation beats iRadimed Corporation on 10 of the 14 factors compared between the two stocks.

Masimo Corporation Company Profile

Masimo Corporation is a medical technology company that develops, manufactures and markets a range of non-invasive patient monitoring technologies. The Company’s business is Measure-through Motion and Low Perfusion pulse oximetry monitoring, known as Masimo Signal Extraction Technology (SET) pulse oximetry. Its product offerings include non-invasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical, brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring. In addition, the Company has developed the Root patient monitoring and connectivity platform, the Radical-7 bedside and portable patient monitor, and the Radius-7 wearable wireless patient monitor. It offers Patient SafetyNet remote patient surveillance monitoring system, which allows patients to be monitored through a personal computer-based monitor or by care providers through their pagers, voice-over-Internet Protocol (IP) phones or smartphones.

iRadimed Corporation Company Profile

IRADIMED CORPORATION (IRADIMED) develops, manufactures, markets and distributes Magnetic Resonance Imaging (MRI) compatible products, and provides non-magnetic intravenous (IV) infusion pump systems. The Company operates through development, manufacture and sale of MRI compatible products and IV infusion pump systems for use by hospitals and acute care facilities during MRI procedures segment. Its MRidium MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, non-ferrous part and other features in order to deliver anesthesia and other IV fluids during various MRI procedures. MRI compatible IV infusion pump system includes the 3860+ MRI compatible IV infusion pump, single-use IV tubing sets, a non-magnetic pole and a lithium battery. In addition, it offers optional upgrade systems, including the 3865 Remote Display/Control, 3861 Side Car, Dose Error Reduction System (DERS) and SpO2 monitor.