Varian Medical Systems (NYSE: VAR) and Rockwell Medical (NASDAQ:RMTI) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

93.4% of Varian Medical Systems shares are owned by institutional investors. Comparatively, 21.1% of Rockwell Medical shares are owned by institutional investors. 0.8% of Varian Medical Systems shares are owned by insiders. Comparatively, 18.2% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Varian Medical Systems has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.

Earnings & Valuation

This table compares Varian Medical Systems and Rockwell Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Varian Medical Systems $2.67 billion 3.81 $249.60 million $3.60 30.88
Rockwell Medical $57.30 million 4.26 -$25.92 million ($0.51) -9.25

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

Profitability

This table compares Varian Medical Systems and Rockwell Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Varian Medical Systems 4.07% 27.51% 12.41%
Rockwell Medical -48.06% -76.49% -45.06%

Analyst Ratings

This is a summary of current ratings and target prices for Varian Medical Systems and Rockwell Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varian Medical Systems 3 3 2 0 1.88
Rockwell Medical 0 0 0 1 4.00

Varian Medical Systems presently has a consensus price target of $111.29, indicating a potential upside of 0.10%. Rockwell Medical has a consensus price target of $11.00, indicating a potential upside of 133.05%. Given Rockwell Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Rockwell Medical is more favorable than Varian Medical Systems.

Summary

Varian Medical Systems beats Rockwell Medical on 9 of the 15 factors compared between the two stocks.

About Varian Medical Systems

Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through two segments, Oncology Systems and Varian Particle Therapy. The Oncology Systems segment provides hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. Its products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment, and accessories; and information management, treatment planning, image processing, clinical knowledge exchange, patient care management, decision-making support, and practice management software. This segment serves university research and community hospitals, private and governmental institutions, healthcare agencies, physicians' offices, oncology practices, radiotherapy centers, and cancer care clinics. The Varian Particle Therapy segment develops, designs, manufactures, sells, and services products and systems for delivering proton therapy for the treatment of cancer. Varian Medical Systems, Inc. has a strategic partnership with Siemens AG to co-develop new imaging and treatment solutions. The company was formerly known as Varian Associates, Inc. and changed its name to Varian Medical Systems, Inc. in April 1999. Varian Medical Systems, Inc. was founded in 1948 and is headquartered in Palo Alto, California.

About Rockwell Medical

Rockwell Medical, Inc. operates as an integrated biopharmaceutical company targeting end-stage renal and chronic kidney diseases in the United States and internationally. The company's lead drug includes Triferic, an iron maintenance therapy that replaces the iron lost by patients during hemodialysis treatment. It also provides Calcitriol, a generic active vitamin D injection, which is indicated for the treatment of secondary hyperparathyroidism in dialysis patients. In addition, the company manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, Renalpure powder bicarbonate concentrate, and SteriLyte liquid bicarbonate concentrate; and ancillary products, including blood tubings, fistula needles, specialized custom kits, dressings, cleaning agents, filtration salts, and other supplies used by hemodialysis providers. Its concentrated dialysate products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. Rockwell Medical, Inc. sells its products directly, as well as through independent sales agents and distributors. The company's target customers include senior and operating management of dialysis companies, dialysis service providers, nephrologists, clinic administrators, nurses, medical directors, and technical and purchasing personnel. Rockwell Medical, Inc. was founded in 1995 and is based in Wixom, Michigan.

Receive News & Ratings for Varian Medical Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Varian Medical Systems and related companies with MarketBeat.com's FREE daily email newsletter.