Senestech (NASDAQ:SNES) vs. Varex Imaging (NASDAQ:VREX) Financial Survey

Senestech (NASDAQ:SNES) and Varex Imaging (NASDAQ:VREX) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Senestech and Varex Imaging, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senestech	1	1	0	1	2.33
Varex Imaging	1	1	2	1	2.60

Varex Imaging has a consensus price target of $16.17, suggesting a potential upside of 38.90%. Given Varex Imaging’s stronger consensus rating and higher probable upside, analysts clearly believe Varex Imaging is more favorable than Senestech.

Valuation & Earnings

This table compares Senestech and Varex Imaging”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senestech	$2.22 million	3.88	-$6.38 million	($2.78)	-0.58
Varex Imaging	$844.60 million	0.58	-$70.30 million	($1.64)	-7.10

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

Institutional & Insider Ownership

5.2% of Senestech shares are held by institutional investors. 5.3% of Senestech shares are held by company insiders. Comparatively, 4.6% of Varex Imaging shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Senestech has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Senestech and Varex Imaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Senestech	-287.39%	-78.74%	-58.47%
Varex Imaging	-7.92%	8.43%	3.66%

Summary

Varex Imaging beats Senestech on 9 of the 14 factors compared between the two stocks.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.

About Varex Imaging

Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components. The company operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components, comprising X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. This segment's products are used in a range of applications, including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses. The Industrial segment designs, develops, manufactures, sells, and services Linatron X-ray linear accelerators, X-ray tubes, digital detectors, high voltage connectors, and coolers for use in security and inspection applications, such as baggage screening at airports, cargo screening at ports and borders, and nondestructive testing, irradiation, and inspection in various applications. The company sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. It has operations in North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation was incorporated in 2016 and is headquartered in Salt Lake City, Utah.