Viewray (NASDAQ: VRAY) and Synergetics USA (NASDAQ:SURG) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

50.6% of Viewray shares are held by institutional investors. 62.8% of Viewray shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Viewray and Synergetics USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viewray -193.53% N/A -59.34%
Synergetics USA 7.35% 9.09% 6.45%

Analyst Ratings

This is a breakdown of current ratings and price targets for Viewray and Synergetics USA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viewray 0 0 6 0 3.00
Synergetics USA 0 0 0 0 N/A

Viewray currently has a consensus price target of $11.58, suggesting a potential upside of 49.08%.

Earnings and Valuation

This table compares Viewray and Synergetics USA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viewray $22.24 million 23.60 -$50.63 million ($1.13) -6.88
Synergetics USA N/A N/A N/A $0.18 N/A

Synergetics USA has lower revenue, but higher earnings than Viewray. Viewray is trading at a lower price-to-earnings ratio than Synergetics USA, indicating that it is currently the more affordable of the two stocks.

Summary

Synergetics USA beats Viewray on 5 of the 9 factors compared between the two stocks.

About Viewray

ViewRay, Inc. designs, manufactures and markets MRIdian, the magnetic resonance imaging (MRI)-guided radiation therapy system to image and treat cancer patients simultaneously. The Company offers radiation therapy technology combined with magnetic resonance imaging. MRIdian integrates MRI technology, radiation delivery and the Company’s software to locate, target and track the position and shape of soft-tissue tumors while radiation is delivered. MRIdian delivers radiation to the tumor accurately while delivering less radiation to healthy tissue. MRIdian provides real-time imaging that defines the targeted tumor from the surrounding soft tissue and other critical organs during radiation treatment. MRIdian allows physicians to record the level of radiation exposure that the tumor has received and adapt the prescription between fractions as needed.

About Synergetics USA

Synergetics USA, Inc., formerly Valley Forge Scientific Corp., is a supplier of precision surgical devices. The Company focuses on the surgical disciplines of ophthalmology and neurosurgery. It offers precision engineered disposable and reusable devices, surgical equipment and surgical procedural kits. It also delivers energy modalities for the performance of surgery, including laser energy, ultrasonic energy, radio frequency energy for electro surgery and lesion generation, visible light energy for illumination and simultaneous infusion (irrigation) of fluids into the operative field. Its products include VersaVIT 2.0 Vitrectomy System, Directional II Laser Probe and Pinnacle 360�. It offers its products under the brand names: VersaPACK, Core Essentials, Photon, Solitaire, Volk’s and Labtician’s, among others. It offers approximately 1,000 separate catalogue items in the vitreoretinal surgical market. It sells its products in approximately 60 countries outside the United States.

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