IRIDEX (NASDAQ:IRIX – Get Free Report) and Curaleaf (OTCMKTS:CURLF – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
20.1% of IRIDEX shares are held by institutional investors. Comparatively, 0.0% of Curaleaf shares are held by institutional investors. 8.6% of IRIDEX shares are held 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.
Valuation and Earnings
This table compares IRIDEX and Curaleaf”s top-line revenue, earnings per share (EPS) 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) | -3.78 |
| Curaleaf | $1.27 billion | 1.48 | -$231.07 million | ($0.13) | -61.97 |
IRIDEX has higher earnings, but lower revenue than Curaleaf. Curaleaf is trading at a lower price-to-earnings ratio than IRIDEX, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares IRIDEX and Curaleaf’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% |
| Curaleaf | -2.62% | -0.88% | -0.26% |
Risk & Volatility
IRIDEX has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Curaleaf has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for IRIDEX and Curaleaf, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IRIDEX | 1 | 0 | 1 | 0 | 2.00 |
| Curaleaf | 0 | 1 | 2 | 1 | 3.00 |
IRIDEX presently has a consensus target price of $3.00, suggesting a potential upside of 296.30%. Curaleaf has a consensus target price of $6.00, suggesting a potential downside of 25.53%. Given IRIDEX’s higher possible upside, equities analysts clearly believe IRIDEX is more favorable than Curaleaf.
Summary
Curaleaf beats IRIDEX on 9 of the 15 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 Curaleaf
Curaleaf Holdings, Inc. operates a cannabis operator in the United States. It operates through two segments, Domestic Operations and International Operations. The company offers flower, pre-rolls, flower pots, and dry-herb vaporizer cartridges; concentrates for vaporizing which includes pre-filled vaporizer cartridges and disposable vaporizer pens; and concentrates for dabbing, such as mints, distillate droppers, mints, topical balms and lotions, tinctures, lozenges, capsules, and edibles. It also provides hemp-based products and cannabinoids, such as cannabidiol and cannabigerol. In addition, the company engages in the cultivation, production, and sale of cannabis products through retail and wholesale channels. The company is headquartered in New York, New York.
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