Analyzing Iradimed (NASDAQ:IRMD) and T2 Biosystems (NASDAQ:TTOO)

Iradimed (NASDAQ:IRMD) and T2 Biosystems (NASDAQ:TTOO) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Iradimed and T2 Biosystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iradimed	0	0	3	0	3.00
T2 Biosystems	0	1	0	0	2.00

Iradimed presently has a consensus price target of $72.00, indicating a potential upside of 37.43%. T2 Biosystems has a consensus price target of $5.00, indicating a potential upside of 3,843.22%. Given T2 Biosystems’ higher probable upside, analysts plainly believe T2 Biosystems is more favorable than Iradimed.

Insider & Institutional Ownership

92.3% of Iradimed shares are owned by institutional investors. Comparatively, 23.2% of T2 Biosystems shares are owned by institutional investors. 37.1% of Iradimed shares are owned by insiders. Comparatively, 0.0% of T2 Biosystems shares are owned 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.

Profitability

This table compares Iradimed and T2 Biosystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iradimed	26.26%	24.12%	21.20%
T2 Biosystems	-563.16%	N/A	-174.06%

Risk & Volatility

Iradimed has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, T2 Biosystems has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Earnings and Valuation

This table compares Iradimed and T2 Biosystems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iradimed	$73.24 million	9.06	$19.23 million	$1.50	34.93
T2 Biosystems	$7.68 million	0.35	-$50.08 million	N/A	N/A

Iradimed has higher revenue and earnings than T2 Biosystems.

Summary

Iradimed beats T2 Biosystems on 11 of the 12 factors compared between the two stocks.

About Iradimed

IRadimed Corp. engages in the development, manufacture, marketing, and distribution of Magnetic Resonance Imaging compatible medical devices. It also provides a non-magnetic Intravenous infusion pump system that is specifically designed for use during MRI procedures. The company was founded by Roger Susi in July 1992 and is headquartered in Winter Springs, FL.

About T2 Biosystems

T2 Biosystems, Inc., an in vitro diagnostics company, develops and sells diagnostic products and product candidates in the United States and internationally. Its technology enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, cerebral spinal fluid, and urine. The company also offers T2Dx Instrument, a bench-top instrument that runs various diagnostic tests from patient samples; T2Candida panel, a direct-from-blood molecular diagnostic test panel that detects lethal form of common blood stream infections, which cause sepsis and candidemia; T2Bacteria panel, a direct-from-blood molecular diagnostic test panel, which detects bacterial pathogens in blood stream infections; T2Resistance panel, a direct-from-blood test that identifies carbapenem resistance genes; and T2Biothreat, a direct-from-blood molecular diagnostic test panel that runs on the T2Dx Instrument and detects biothreat pathogens. In addition, it is developing T2Cauris panel, a direct-from-blood molecular diagnostic test that runs on the T2Dx Instrument and detects Candida auris; and T2Lyme panel, a direct-from-blood molecular diagnostic test panel that runs on the T2Dx Instrument to identify the bacteria that cause Lyme disease. T2 Biosystems, Inc. was incorporated in 2006 and is headquartered in Lexington, Massachusetts.