Contrasting Accuray (NASDAQ:ARAY) and RxSight (NASDAQ:RXST)

Accuray (NASDAQ:ARAY) and RxSight (NASDAQ:RXST) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Accuray and RxSight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	1	2	0	0	1.67
RxSight	3	7	2	0	1.92

Accuray presently has a consensus target price of $2.00, indicating a potential upside of 611.74%. RxSight has a consensus target price of $8.17, indicating a potential upside of 74.62%. Given Accuray’s higher probable upside, equities analysts plainly believe Accuray is more favorable than RxSight.

Profitability

This table compares Accuray and RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accuray	-12.24%	-97.85%	-10.82%
RxSight	-36.80%	-17.35%	-14.70%

Valuation & Earnings

This table compares Accuray and RxSight”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$401.95 million	0.08	-$49.19 million	($0.40)	-0.70
RxSight	$134.48 million	1.45	-$38.94 million	($1.13)	-4.14

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

Volatility and Risk

Accuray has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, RxSight has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

64.1% of Accuray shares are owned by institutional investors. Comparatively, 78.8% of RxSight shares are owned by institutional investors. 2.4% of Accuray shares are owned by company insiders. Comparatively, 10.1% of RxSight shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

About Accuray

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Asia, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, and China. It offers the CyberKnife platform, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy platform, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.