Analyzing Olink Holding AB (publ) (NASDAQ:OLK) and FONAR (NASDAQ:FONR)

Olink Holding AB (publ) (NASDAQ:OLK) and FONAR (NASDAQ:FONR) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares Olink Holding AB (publ) and FONAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olink Holding AB (publ)	-18.63%	-6.50%	-5.63%
FONAR	12.63%	8.47%	6.45%

Institutional and Insider Ownership

30.2% of Olink Holding AB (publ) shares are owned by institutional investors. Comparatively, 50.6% of FONAR shares are owned by institutional investors. 1.6% of FONAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Olink Holding AB (publ) and FONAR’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olink Holding AB (publ)	$169.60 million	16.67	-$31.60 million	($0.25)	-90.96
FONAR	$98.64 million	1.08	$9.38 million	$1.84	9.15

FONAR has lower revenue, but higher earnings than Olink Holding AB (publ). Olink Holding AB (publ) is trading at a lower price-to-earnings ratio than FONAR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Olink Holding AB (publ) and FONAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olink Holding AB (publ)	0	4	0	0	2.00
FONAR	0	0	0	0	N/A

Olink Holding AB (publ) currently has a consensus target price of $26.00, indicating a potential upside of 14.34%. Given Olink Holding AB (publ)’s higher possible upside, equities research analysts clearly believe Olink Holding AB (publ) is more favorable than FONAR.

Risk and Volatility

Olink Holding AB (publ) has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, FONAR has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

FONAR beats Olink Holding AB (publ) on 9 of the 12 factors compared between the two stocks.

About Olink Holding AB (publ)

Olink Holding AB (publ) develops, produces, markets, and sells biotechnological products and services for the academic, government, biopharmaceutical, biotechnology, service provider, and other institutions that focuses on life science research. The company's products include Olink Explore that consist of Explore 372 and Explore 384 for cardiovascular and metabolic, oncology, neurology, and inflammation diseases; Olink Target product line; Olink Flex, a low-plex applications and use-cases; and Olink Focus product line that consists of custom developed solutions for customers that has identified various proteins of interest or a protein signature to focus on. Its products also comprise Olink Signature Q100, a qPCR readout platform; Olink Analysis services comprising study design and consultation, sample preparation and assay execution, and data processing and QC; and data analysis and bioinformatics services. In addition, the company offers Olink normalized protein expression (NPX) data processing software, a purpose-built software that enable users to import data, perform data analysis including visualizations, and statistical modelling; and Olink Insight, a cloud platform for Olink community to accelerate proteomics. It sells its products and services through its own direct sales force in Sweden, the United States, rest of the Americas, rest of Europe, the Middle East, Africa, Japan, and internationally. The company was formerly known as Knilo HoldCo AB and changed its name to Olink Holding AB (publ) in January 2021. Olink Holding AB (publ) was founded in 2004 and is headquartered in Uppsala, Sweden.

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.