Head to Head Contrast: QT Imaging (NASDAQ:QTI) and IRIDEX (NASDAQ:IRIX)

QT Imaging (NASDAQ:QTI) and IRIDEX (NASDAQ:IRIX) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares QT Imaging and IRIDEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QT Imaging	N/A	N/A	-19.75%
IRIDEX	-21.92%	-105.42%	-31.18%

Institutional & Insider Ownership

24.2% of QT Imaging shares are owned by institutional investors. Comparatively, 20.1% of IRIDEX shares are owned by institutional investors. 75.4% of QT Imaging shares are owned by insiders. Comparatively, 6.2% of IRIDEX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares QT Imaging and IRIDEX’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QT Imaging	N/A	N/A	-$4.03 million	N/A	N/A
IRIDEX	$51.87 million	0.62	-$9.57 million	($0.67)	-2.97

QT Imaging has higher earnings, but lower revenue than IRIDEX.

Risk and Volatility

QT Imaging has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, IRIDEX has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for QT Imaging and IRIDEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QT Imaging	0	0	0	0	N/A
IRIDEX	0	1	0	0	2.00

IRIDEX has a consensus price target of $2.00, suggesting a potential upside of 0.50%. Given IRIDEX’s higher possible upside, analysts clearly believe IRIDEX is more favorable than QT Imaging.

Summary

QT Imaging beats IRIDEX on 6 of the 9 factors compared between the two stocks.

About QT Imaging

QT Imaging Holdings, Inc. engages in the research, development, and commercialization of body imaging systems for detection, diagnosis, monitoring, and treatment of diseases. The company offers QT Ultrasound Breast Scanner, an ultrasonic imaging system that provides reflection-mode and transmission-mode images of a patient's breast. QT Imaging Holdings, Inc. was founded in 2011 and is based in Novato, California.

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.