Financial Comparison: IRIDEX (NASDAQ:IRIX) versus Xcorporeal (OTCMKTS:XCRP)

Xcorporeal (OTCMKTS:XCRP) and IRIDEX (NASDAQ:IRIX) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xcorporeal	N/A	N/A	N/A
IRIDEX	-22.79%	-192.95%	-33.97%

Earnings and Valuation

This table compares Xcorporeal and IRIDEX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcorporeal	N/A	N/A	N/A	N/A	N/A
IRIDEX	$48.67 million	0.40	-$9.57 million	($0.54)	-2.13

Xcorporeal has higher earnings, but lower revenue than IRIDEX.

Analyst Ratings

This is a breakdown of current recommendations for Xcorporeal and IRIDEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcorporeal	0	0	0	0	0.00
IRIDEX	0	1	0	0	2.00

IRIDEX has a consensus target price of $2.00, indicating a potential upside of 73.91%. Given IRIDEX’s stronger consensus rating and higher probable upside, analysts clearly believe IRIDEX is more favorable than Xcorporeal.

Insider & Institutional Ownership

20.1% of IRIDEX shares are held by institutional investors. 7.3% of IRIDEX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

IRIDEX beats Xcorporeal on 5 of the 8 factors compared between the two stocks.

About Xcorporeal

Xcorporeal, Inc. is in the process of liquidation and dissolution, pursuant to the plan adopted by board of directors of the company on February 4, 2010. The company has formed the liquidating trust, Xcorporeal, Inc. Liquidating Trust, and transferred all of its assets to the trust for the purpose of completing the liquidation and dissolution of the company. Previously, it operated as a medical device company, which was engaged in the development of an extra-corporeal platform technology to be used in devices to replace the function of various human organs. Xcorporeal, Inc. was founded in 2001 and is based in Lake Forest, 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.