Head-To-Head Review: Semler Scientific (NASDAQ:SMLR) versus FONAR (NASDAQ:FONR)

Semler Scientific (NASDAQ:SMLR) and FONAR (NASDAQ:FONR) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

49.4% of Semler Scientific shares are held by institutional investors. Comparatively, 50.6% of FONAR shares are held by institutional investors. 13.0% of Semler Scientific shares are held by company insiders. Comparatively, 2.2% of FONAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Semler Scientific has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, FONAR has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Semler Scientific and FONAR’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semler Scientific	$68.18 million	3.65	$20.58 million	$2.79	12.63
FONAR	$98.64 million	0.97	$9.38 million	$1.56	9.70

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

Profitability

This table compares Semler Scientific and FONAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Semler Scientific	32.92%	30.36%	27.38%
FONAR	10.66%	7.10%	5.39%

Analyst Recommendations

This is a summary of current recommendations and price targets for Semler Scientific and FONAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semler Scientific	0	0	0	1	4.00
FONAR	0	0	0	0	N/A

Summary

Semler Scientific beats FONAR on 9 of the 12 factors compared between the two stocks.

About Semler Scientific

Semler Scientific, Inc. provides technology solutions to enhance the clinical effectiveness and efficiency of healthcare providers in the United States. The company's products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient's vascular condition. It also offers Insulin Insights, a software program that is used by a healthcare provider to optimize outpatient insulin dosing. The company's products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, family practitioners, healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups and retailers. It offers its products through sales representatives and distributors. The company was incorporated in 2007 and is headquartered in Santa Clara, California.

About FONAR

FONAR Corporation, together with its subsidiaries, engages in the research, development, production, and marketing of magnetic resonance imaging (MRI) scanners for the detection and diagnosis of human diseases in the United States. The company operates in two segments, Medical Equipment, and Physician Management and Diagnostic Services. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company also offers non-medical management, including administrative services, billing and collection services, credentialing services, contract negotiations, compliance consulting, purchasing IT services, hiring, conducting interviews, training, supervision and management of non-medical personnel, storage of medical records, office space, equipment, repair maintenance services, accounting, assistance with compliance matters, and development and implementation of practice growth and marketing strategies. It owns and operates diagnostic imaging facilities in Florida; and manages MRI scanning facilities. The company markets its scanners to private diagnostic imaging centers and hospital outpatient imaging facilities. FONAR Corporation was founded in 1970 and is based in Melville, New York.