IRIDEX (NASDAQ:IRIX) and ICU Medical (NASDAQ:ICUI) Critical Contrast

IRIDEX (NASDAQ:IRIX) and ICU Medical (NASDAQ:ICUI) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Insider & Institutional Ownership

20.1% of IRIDEX shares are owned by institutional investors. Comparatively, 96.1% of ICU Medical shares are owned by institutional investors. 8.6% of IRIDEX shares are owned by company insiders. Comparatively, 2.1% of ICU Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares IRIDEX and ICU Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRIDEX	-6.88%	N/A	-12.55%
ICU Medical	1.39%	7.91%	4.17%

Earnings & Valuation

This table compares IRIDEX and ICU Medical”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRIDEX	$52.67 million	0.25	-$4.44 million	($0.20)	-3.73
ICU Medical	$2.23 billion	1.87	$730,000.00	$1.18	141.20

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for IRIDEX and ICU Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRIDEX	1	0	1	0	2.00
ICU Medical	0	3	4	2	2.89

IRIDEX presently has a consensus target price of $3.00, suggesting a potential upside of 302.31%. ICU Medical has a consensus target price of $192.80, suggesting a potential upside of 15.71%. Given IRIDEX’s higher probable upside, equities analysts plainly believe IRIDEX is more favorable than ICU Medical.

Volatility and Risk

IRIDEX has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, ICU Medical has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Summary

ICU Medical beats IRIDEX on 12 of the 14 factors compared between the two stocks.

About IRIDEX

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology. It offers laser consoles, such as Cyclo G6 laser system for use in the treatment of glaucoma; IQ 532 and IQ 577 laser systems, which are used for the treatment of retinal disorders; and OcuLight TX, OcuLight SL, OcuLight SLx, OcuLight GL, and OcuLight GLx laser photocoagulation systems that are used to treat proliferative diabetic retinopathy, macular holes, retinal tears, and detachments. The company also provides delivery devices, including TxCell scanning laser delivery system that allows the physician to perform multi-spot pattern scanning; slit lamp adapter, which allows the physician to utilize a standard slit lamp in diagnosis and treatment procedures; and laser indirect ophthalmoscope for use in procedures to treat peripheral retinal disorders. It offers MicroPulse P3 Probe, which is used with its Cylco G6 laser system to perform MicroPulse transscleral laser therapy; G-Probe, which is used in procedures to treat uncontrolled glaucoma; G-Probe and G-Probe Illuminate, which are used in procedures to treat refractory glaucoma; and EndoProbe family of products for use in vitrectomy procedures. The company serves ophthalmologists, research and teaching hospitals, government installations, surgical centers, hospitals, veterinary practices, and office clinics. It markets its products through direct and independent sales force in the United States, as well as through independent distributors internationally. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was incorporated in 1989 and is headquartered in Mountain View, California.

About ICU Medical

ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy, vascular access, and vital care applications worldwide. Its infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; ChemoClave and ChemoLock closed system transfer devices, which are used to limit the escape of hazardous drugs or vapor concentrations, block the transfer of environmental contaminants into the system, and eliminates the risk of needlestick injury; Tego needle free connectors; Deltec GRIPPER non-coring needles for portal access; and ClearGuard, SwabCap, and SwabTip disinfection caps. The company provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation solutions comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. It offers infusion pumps under the Plum 360 and Plum Duo brands; ambulatory and syringe infusion hardware products; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform; LifeShield and PharmGuard medication infusion safety software; hemodynamic monitoring products; anesthesia systems and devices, breathing circuits, ventilation, respiratory, and specialty airway products; temperature management solutions; anesthesia/pain management trays and components; and professional services. The company's customers include acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is based in San Clemente, California.