Varian Medical Systems (NASDAQ: EYES) and Second Sight Medical Products (NASDAQ:EYES) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
This table compares Varian Medical Systems and Second Sight Medical Products’ 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%|
|Second Sight Medical Products||-418.82%||-432.45%||-232.22%|
This is a breakdown of current ratings and target prices for Varian Medical Systems and Second Sight Medical Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||2||2||0||1.86|
|Second Sight Medical Products||0||0||1||0||3.00|
Varian Medical Systems presently has a consensus target price of $113.33, suggesting a potential upside of 1.17%. Second Sight Medical Products has a consensus target price of $5.00, suggesting a potential upside of 195.86%. Given Second Sight Medical Products’ stronger consensus rating and higher probable upside, analysts plainly believe Second Sight Medical Products is more favorable than Varian Medical Systems.
Volatility and Risk
Varian Medical Systems has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Second Sight Medical Products has a beta of 3.08, suggesting that its stock price is 208% more volatile than the S&P 500.
Insider & Institutional Ownership
93.0% of Varian Medical Systems shares are held by institutional investors. Comparatively, 10.8% of Second Sight Medical Products shares are held by institutional investors. 0.8% of Varian Medical Systems shares are held by insiders. Comparatively, 34.7% of Second Sight Medical Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Varian Medical Systems and Second Sight Medical Products’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Varian Medical Systems||$2.67 billion||3.84||$249.60 million||$3.60||31.12|
|Second Sight Medical Products||$7.96 million||14.24||-$28.51 million||($0.59)||-2.86|
Varian Medical Systems has higher revenue and earnings than Second Sight Medical Products. Second Sight Medical Products 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.
Varian Medical Systems beats Second Sight Medical Products on 9 of the 14 factors compared between the two stocks.
Varian Medical Systems Company Profile
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.
Second Sight Medical Products Company Profile
Second Sight Medical Products, Inc., together with its subsidiaries, develops, manufactures, and markets prosthetic devices to restore functional vision of blind individuals in the United States, Canada, Europe, the Middle East, and Asia. It offers Argus II System, which treats outer retinal degenerations, such as retinitis pigmentosa. The company was formerly known as Second Sight LLC. and changed its name to Second Sight Medical Products, Inc. Second Sight Medical Products, Inc. was founded in 1998 and is headquartered in Sylmar, California.
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