Critical Analysis: Pixie Dust Technologies (NASDAQ:PXDT) and FONAR (NASDAQ:FONR)

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

Institutional and Insider Ownership

0.4% of Pixie Dust Technologies shares are owned by institutional investors. Comparatively, 50.6% of FONAR shares are owned by institutional investors. 2.2% of FONAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Pixie Dust Technologies and FONAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pixie Dust Technologies	N/A	N/A	N/A
FONAR	10.66%	7.50%	5.69%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pixie Dust Technologies and FONAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pixie Dust Technologies	0	0	1	0	3.00
FONAR	0	0	0	0	N/A

Pixie Dust Technologies presently has a consensus target price of $5.21, indicating a potential upside of 274.82%. Given Pixie Dust Technologies’ higher possible upside, analysts plainly believe Pixie Dust Technologies is more favorable than FONAR.

Valuation and Earnings

This table compares Pixie Dust Technologies 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
Pixie Dust Technologies	$6.30 million	3.28	-$12.53 million	N/A	N/A
FONAR	$98.64 million	1.08	$9.38 million	$1.56	10.78

FONAR has higher revenue and earnings than Pixie Dust Technologies.

Summary

FONAR beats Pixie Dust Technologies on 7 of the 10 factors compared between the two stocks.

About Pixie Dust Technologies

Pixie Dust Technologies, Inc., a technology company, focuses on personal care and diversity, and workspace and digital transformation businesses primarily in Japan. It offers SonoRepro, an ultrasonic non-contact vibrotactile stimulation scalp care device; VUEVO, a series of directional voice arrival detection devices for individuals with deaf and hard-of-hearing; and kikippa, an acoustic stimulation device functioning as a desk-top speaker. The company also provides iwasemi, a sound-absorbing or sound-proofing material for architectural and interior design firms; hackke, a location positioning technology; KOTOWARI, a technology offering spatial analysis data; and magickiri, a planning services and monitoring service, which monitors human behavior and analyzes the customer's environment on the customer's behalf. In addition, it operates Pixie Nest, a membership forum, which hosts meetings and distributes information to facilitate solving social issues. The company was incorporated in 2017 and is headquartered in Tokyo, Japan.

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.