Financial Analysis: DIAGNOS (OTCMKTS:DGNOF) versus freenet (OTCMKTS:FRTAF)

DIAGNOS (OTCMKTS:DGNOF) and freenet (OTCMKTS:FRTAF) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares DIAGNOS and freenet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DIAGNOS	-1,553.79%	N/A	-297.10%
freenet	5.89%	17.11%	7.12%

Valuation and Earnings

This table compares DIAGNOS and freenet’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DIAGNOS	$370,000.00	44.79	-$1.88 million	($0.04)	-5.41
freenet	$2.84 billion	N/A	$167.31 million	$1.41	19.25

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

Analyst Ratings

This is a summary of recent recommendations and price targets for DIAGNOS and freenet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DIAGNOS	0	0	0	0	N/A
freenet	0	0	0	0	N/A

Risk & Volatility

DIAGNOS has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, freenet has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Summary

freenet beats DIAGNOS on 8 of the 8 factors compared between the two stocks.

About DIAGNOS

DIAGNOS Inc. provides software-based services primarily in Canada, the United States, Colombia, Spain, Mexico, Saudi Arabia, and Costa Rica. The company offers healthcare services through Computer Assisted Retina Analysis, a web-based software tool that assists healthcare professionals for the detection of diabetic retinopathy; and allows eye care specialist to visualize both normal retinal landmarks and pathological changes. It also provides various consulting services in the fields of data analysis and artificial intelligence. DIAGNOS Inc. was founded in 1998 and is headquartered in Brossard, Canada.

About freenet

freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile communications network operators; planning, construction, installation, and maintenance services for WiFi networks; and selling and distribution of mobile communications devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides app-based Internet products. The TV and Media segment is involved in the planning, project management, installation, operation, service, and marketing services for broadcast-related solutions for business clients in the radio and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT solutions, and other services; and voice and data services. The company provides its services under the klarmobil.de, freenetmobile.de, callmobile.de, freenet FLEX, freenet MOBILE, FUNK, freenet TV, waipu.tv, freenet VIDEO, freenet.de, GRAVIS, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online platforms. freenet AG was founded in 2005 and is headquartered in Büdelsdorf, Germany.