In the dynamic healthcare sector, IQVIA Holdings Inc. (IQV) and RadNet, Inc. (RDNT) stand out as key players in medical diagnostics and research. IQVIA leverages advanced analytics and technology solutions globally, while RadNet focuses on outpatient diagnostic imaging services and AI innovations in the U.S. Their overlapping markets and innovation-driven strategies make them compelling subjects for comparison. Join me as we explore which company holds more promise for investors seeking growth and stability.
Table of contents
Companies Overview
I will begin the comparison between IQVIA Holdings Inc. and RadNet, Inc. by providing an overview of these two companies and their main differences.
IQVIA Overview
IQVIA Holdings Inc. operates globally, offering advanced analytics, technology solutions, and clinical research services to the life sciences industry. The company serves pharmaceutical, biotechnology, device, diagnostic, and consumer health sectors through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. Founded in 1982 and headquartered in Durham, NC, IQVIA is positioned as a comprehensive service provider in healthcare data and clinical research.
RadNet Overview
RadNet, Inc. provides outpatient diagnostic imaging services across the United States, including MRI, CT, PET, nuclear medicine, mammography, and ultrasound. It also develops computerized systems and AI solutions to support medical imaging interpretation, focusing on cancer diagnostics. Headquartered in Los Angeles, CA, RadNet operates 347 imaging centers and targets the diagnostic imaging market primarily through its owned and managed facilities.
Key similarities and differences
Both IQVIA and RadNet operate within the healthcare sector, specifically in medical diagnostics and research. IQVIA’s business is broader, encompassing data analytics, clinical trials, and consulting services worldwide, while RadNet focuses on outpatient diagnostic imaging services and technology primarily in the U.S. IQVIA employs around 89K people, whereas RadNet has about 11K employees, reflecting their different scales and scopes of operations.
Income Statement Comparison
The table below presents a side-by-side comparison of the key income statement metrics for IQVIA Holdings Inc. and RadNet, Inc. for the fiscal year 2024.
| Metric | IQVIA Holdings Inc. | RadNet, Inc. |
|---|---|---|
| Market Cap | 41.3B | 6.0B |
| Revenue | 15.4B | 1.83B |
| EBITDA | 3.45B | 263M |
| EBIT | 2.34B | 125M |
| Net Income | 1.37B | 2.79M |
| EPS | 7.57 | 0.0382 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
IQVIA Holdings Inc.
IQVIA’s revenue demonstrated steady growth from 11.36B in 2020 to 15.41B in 2024, with net income rising significantly from 279M to 1.37B over the same period. Margins remain favorable, particularly gross margin at 34.9% and EBIT margin at 15.2%. In 2024, revenue growth slowed to 2.8%, but EBIT improved by 9.8%, indicating operational efficiency gains.
RadNet, Inc.
RadNet’s revenue increased from 1.07B in 2020 to 1.83B in 2024, with net income improving from a loss of 14.8M to a modest 2.8M. Margins are more constrained, with gross margin at 13.6% and EBIT margin at 6.8%, both neutral in status. The latest year saw strong revenue growth of 13.2%, yet net margin declined sharply by 18.9%, reflecting pressure on profitability.
Which one has the stronger fundamentals?
IQVIA exhibits stronger fundamentals with higher and more stable margins, significant net income growth, and a favorable overall income statement evaluation at 78.6% favorable metrics. RadNet, while growing revenue faster, struggles with lower profitability and greater net margin volatility, resulting in a less robust income profile with 57.1% favorable indicators.
Financial Ratios Comparison
The table below presents key financial ratios for IQVIA Holdings Inc. and RadNet, Inc. for the fiscal year 2024, providing a snapshot of their operational efficiency, profitability, liquidity, and leverage.
| Ratios | IQVIA Holdings Inc. (IQV) | RadNet, Inc. (RDNT) |
|---|---|---|
| ROE | 22.6% | 0.3% |
| ROIC | 8.6% | 3.1% |
| P/E | 25.9 | 1826.3 |
| P/B | 5.87 | 5.65 |
| Current Ratio | 0.84 | 2.12 |
| Quick Ratio | 0.84 | 2.12 |
| D/E | 2.33 | 1.92 |
| Debt-to-Assets | 52.6% | 52.6% |
| Interest Coverage | 3.29 | 1.31 |
| Asset Turnover | 0.57 | 0.56 |
| Fixed Asset Turnover | 19.93 | 1.37 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
IQVIA Holdings Inc.
IQVIA shows a mixed ratio profile with a favorable return on equity at 22.63% and strong fixed asset turnover of 19.93, indicating efficient asset use. However, concerns arise from its high debt-to-equity ratio of 2.33 and below-par current ratio of 0.84, signaling liquidity risks. The company does not pay dividends, likely prioritizing reinvestment and growth, as reflected by zero dividend yield and payout.
RadNet, Inc.
RadNet’s ratios signal significant weaknesses, with a low net margin of 0.15% and return on equity at 0.31%, both unfavorable. While its current and quick ratios exceed 2.1, denoting strong liquidity, the high debt-to-equity ratio of 1.92 and low interest coverage of 1.56 are concerning. RadNet also pays no dividends, possibly reflecting reinvestment or financial constraints given its weak profitability.
Which one has the best ratios?
Between the two, IQVIA presents a slightly unfavorable overall ratio assessment but outperforms RadNet, which has a clearly unfavorable profile. IQVIA’s stronger profitability and asset efficiency contrast with RadNet’s low returns and higher financial risk, despite RadNet’s better liquidity ratios. Both companies share the absence of dividend payouts, signaling reinvestment or growth focus.
Strategic Positioning
This section compares the strategic positioning of IQVIA Holdings Inc. and RadNet, Inc. including market position, key segments, and exposure to technological disruption:
IQVIA Holdings Inc.
- Leading in global life sciences analytics and research, facing moderate competitive pressure.
- Diversified segments: Technology & Analytics, R&D, and Contract Sales & Medical Solutions driving revenues.
- Uses advanced cloud-based analytics and strategic consulting but faces evolving technology risks.
RadNet, Inc.
- Regional outpatient diagnostic imaging provider with competitive pressures in U.S. markets.
- Concentrated on diagnostic imaging services and AI solutions for radiology in several U.S. states.
- Develops AI suites for imaging interpretation, integrating technology into traditional diagnostic services.
IQVIA Holdings Inc. vs RadNet, Inc. Positioning
IQVIA pursues a diversified global approach with multiple business segments, enhancing resilience but increasing complexity. RadNet focuses on concentrated U.S. imaging services and AI, which may limit scale but allows specialization. Both face sector-specific competitive and technological challenges.
Which has the best competitive advantage?
Both companies have a slightly unfavorable moat status, shedding value but with growing profitability. IQVIA’s broader segment diversification contrasts with RadNet’s narrower focus, yet neither shows a strong sustainable competitive advantage based on current MOAT evaluations.
Stock Comparison
The stock price movements over the past year reveal contrasting trading dynamics, with IQVIA Holdings Inc. showing modest bullish acceleration and RadNet, Inc. exhibiting significant long-term gains but recent bearish deceleration.
Trend Analysis
IQVIA Holdings Inc. experienced a 1.6% price increase over the past 12 months, indicating a neutral to slightly bullish trend with accelerating momentum and high volatility (std deviation 30.97). The stock ranged between 137.0 and 257.18.
RadNet, Inc. recorded a strong bullish trend with a 104.23% price increase over the past year, though its recent trend shows a 6.25% decline, reflecting bearish deceleration and moderate volatility (std deviation 11.02). Its price fluctuated between 38.29 and 83.41.
Comparing the two, RadNet, Inc. delivered the highest market performance over the past year despite recent downward pressure, while IQVIA Holdings Inc. maintained a mild bullish trend with accelerating gains.
Target Prices
The current analyst consensus presents optimistic target prices for both IQVIA Holdings Inc. and RadNet, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| IQVIA Holdings Inc. | 290 | 214 | 253.2 |
| RadNet, Inc. | 95 | 90 | 92.25 |
Analysts expect IQVIA’s stock to rise above its current price of $242.41, reflecting confidence in its growth potential. RadNet’s consensus target is also well above its current trading price of $78.20, indicating positive market sentiment.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for IQVIA Holdings Inc. and RadNet, Inc.:
Rating Comparison
IQV Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, showing a favorable outlook on cash flow.
- ROE Score: 5, indicating very favorable efficiency in generating profit from equity.
- ROA Score: 4, favorable use of assets to generate earnings.
- Debt To Equity Score: 1, indicating very unfavorable financial risk due to high debt.
- Overall Score: 3, a moderate overall financial standing.
RDNT Rating
- Rating: D+, indicating a very unfavorable assessment.
- Discounted Cash Flow Score: 1, reflecting a very unfavorable view.
- ROE Score: 1, suggesting very unfavorable profitability from equity.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 1, also very unfavorable balance sheet risk.
- Overall Score: 1, very unfavorable overall financial position.
Which one is the best rated?
Based strictly on the provided data, IQV is better rated with a B+ rating and favorable to very favorable scores in key financial metrics, compared to RDNT’s D+ rating and consistently very unfavorable scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for IQVIA Holdings Inc. and RadNet, Inc.:
IQV Scores
- Altman Z-Score: 2.15, indicating a moderate bankruptcy risk in the grey zone.
- Piotroski Score: 5, representing an average financial strength.
RDNT Scores
- Altman Z-Score: 2.16, indicating a moderate bankruptcy risk in the grey zone.
- Piotroski Score: 2, representing very weak financial strength.
Which company has the best scores?
IQVIA Holdings Inc. and RadNet, Inc. both fall in the Altman Z-Score grey zone, indicating moderate bankruptcy risk. However, IQVIA’s Piotroski Score is average at 5, while RadNet’s score is very weak at 2, showing stronger financial health for IQVIA based strictly on these scores.
Grades Comparison
Here is a comparison of the recent grades assigned to IQVIA Holdings Inc. and RadNet, Inc.:
IQVIA Holdings Inc. Grades
The following table shows recent grades from reputable financial firms for IQVIA Holdings Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Buy | 2026-01-08 |
| UBS | Maintain | Buy | 2026-01-08 |
| Morgan Stanley | Maintain | Overweight | 2025-12-02 |
| TD Cowen | Downgrade | Hold | 2025-11-03 |
| Baird | Upgrade | Outperform | 2025-10-29 |
| Truist Securities | Maintain | Buy | 2025-10-29 |
| JP Morgan | Maintain | Overweight | 2025-10-29 |
| Stifel | Maintain | Buy | 2025-10-29 |
| Citigroup | Maintain | Neutral | 2025-10-29 |
| UBS | Maintain | Buy | 2025-10-29 |
Overall, IQVIA’s grades trend mostly positive with multiple Buy and Overweight ratings, alongside some upgrades and a single recent downgrade.
RadNet, Inc. Grades
This table summarizes recent grades from respected financial institutions for RadNet, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B. Riley Securities | Maintain | Buy | 2025-12-01 |
| Barclays | Maintain | Overweight | 2025-11-13 |
| Truist Securities | Maintain | Buy | 2025-11-12 |
| Truist Securities | Maintain | Buy | 2025-09-03 |
| Barclays | Maintain | Overweight | 2025-09-03 |
| Raymond James | Maintain | Strong Buy | 2025-08-13 |
| Truist Securities | Maintain | Buy | 2025-04-11 |
| Barclays | Maintain | Overweight | 2025-03-24 |
| Raymond James | Upgrade | Strong Buy | 2025-03-05 |
| Barclays | Maintain | Overweight | 2025-01-22 |
RadNet’s grades show a strong and consistent Buy and Overweight consensus, including multiple Strong Buy ratings and an upgrade from Raymond James.
Which company has the best grades?
Both IQVIA and RadNet have predominantly positive grades with consensus ratings of Buy. RadNet exhibits a stronger emphasis on higher ratings such as Strong Buy and Overweight, potentially signaling higher confidence from analysts. This may influence investor sentiment by suggesting more bullish expectations for RadNet compared to IQVIA’s more mixed but still favorable ratings.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for IQVIA Holdings Inc. (IQV) and RadNet, Inc. (RDNT) based on recent financial and operational data.
| Criterion | IQVIA Holdings Inc. (IQV) | RadNet, Inc. (RDNT) |
|---|---|---|
| Diversification | Highly diversified with three main segments: Research & Development Solutions ($8.53B), Technology & Analytics Solutions ($6.16B), Contract Sales & Medical Solutions ($0.72B) | Moderately diversified with multiple healthcare service revenues: Commercial Insurance ($1.02B), Medicare ($0.41B), Capitation Arrangements ($0.14B), and other smaller segments |
| Profitability | Moderate profitability: Net margin 8.91%, ROE 22.63%, ROIC 8.59% (slightly unfavorable moat but growing profitability) | Low profitability: Net margin 0.15%, ROE 0.31%, ROIC 3.14% (unfavorable moat but improving ROIC) |
| Innovation | Strong focus on innovation with large investment in technology and analytics solutions segment | Limited innovation focus, primary revenue from traditional healthcare imaging and related services |
| Global presence | Broad global footprint with extensive contract research and tech services worldwide | Primarily US-focused with healthcare imaging and diagnostic services |
| Market Share | Leading market position in clinical research and healthcare analytics sectors | Regional player in medical imaging services, smaller market share in healthcare sector |
Key takeaways: IQVIA demonstrates strength in diversification and innovation with solid profitability trends, despite a slightly unfavorable moat status. RadNet faces challenges in profitability and market positioning but shows gradual improvement in capital efficiency. Investors should weigh IQV’s global scale and innovation against RDNT’s regional focus and lower margins.
Risk Analysis
Below is a comparative risk table for IQVIA Holdings Inc. (IQV) and RadNet, Inc. (RDNT) based on the most recent 2024 data:
| Metric | IQVIA Holdings Inc. (IQV) | RadNet, Inc. (RDNT) |
|---|---|---|
| Market Risk | Beta 1.37 – Moderate volatility | Beta 1.51 – Higher volatility |
| Debt level | Debt/Equity 2.33 – High leverage | Debt/Equity 1.92 – High leverage |
| Regulatory Risk | Moderate – Healthcare regulations globally | Moderate to High – U.S. healthcare compliance |
| Operational Risk | Moderate – Diverse segments but complex operations | Moderate – Reliant on outpatient imaging centers |
| Environmental Risk | Low – Limited direct environmental impact | Low – Limited direct environmental impact |
| Geopolitical Risk | Moderate – Global presence exposes to regional risks | Low to Moderate – U.S.-focused operations |
The most likely and impactful risks for both companies relate to their elevated debt levels, which increase financial risk, and market volatility given their betas above 1.3. IQV’s global operations expose it to geopolitical and regulatory risks, while RDNT faces challenges from its lower profitability and operational concentration in the U.S. outpatient imaging market. Both have Altman Z-scores in the grey zone, indicating moderate bankruptcy risk, with RDNT’s weak Piotroski score signaling financial vulnerability. Caution is advised, especially regarding leverage and earnings stability.
Which Stock to Choose?
IQVIA Holdings Inc. shows a favorable income statement with strong profitability, including an 8.91% net margin and 22.63% ROE, though its revenue growth is modest. Financial ratios reveal slightly unfavorable leverage and liquidity metrics, with a B+ rating indicating overall strength but some caution on debt levels. The company’s ROIC is below WACC, signaling value destruction despite growing profitability.
RadNet, Inc. presents a mixed picture: revenue growth is robust at 13.18% year-on-year, but profitability remains very low with a 0.15% net margin and weak returns on equity and assets. Financial ratios are mostly unfavorable, especially on debt and interest coverage, reflected in a D+ rating. Its ROIC is also below WACC, showing value destruction despite improving returns.
For investors, IQVIA might appear more favorable for those seeking quality and profitability with moderate risk tolerance, given its stronger income metrics and rating. Conversely, RadNet could be considered by investors focused on growth potential despite financial challenges, as indicated by its revenue expansion but weaker ratios and rating. Both companies show value destruction risks, suggesting caution.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of IQVIA Holdings Inc. and RadNet, Inc. to enhance your investment decisions:
