Inogen (NASDAQ:INGN) vs. Accuray (NASDAQ:ARAY) Critical Analysis

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

Analyst Recommendations

This is a summary of recent ratings for Inogen and Accuray, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inogen	1	0	0	1	2.50
Accuray	1	2	0	0	1.67

Accuray has a consensus price target of $2.00, indicating a potential upside of 1,392.54%. Given Accuray’s higher probable upside, analysts clearly believe Accuray is more favorable than Inogen.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inogen	-6.94%	-13.17%	-8.36%
Accuray	-12.24%	-97.85%	-10.82%

Valuation and Earnings

This table compares Inogen and Accuray”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inogen	$354.30 million	0.53	-$22.75 million	($0.90)	-7.82
Accuray	$401.95 million	0.04	-$49.19 million	($0.40)	-0.34

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

Risk and Volatility

Inogen has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Insider & Institutional Ownership

89.9% of Inogen shares are owned by institutional investors. Comparatively, 64.1% of Accuray shares are owned by institutional investors. 2.5% of Inogen shares are owned by company insiders. Comparatively, 2.4% of Accuray shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Inogen beats Accuray on 10 of the 14 factors compared between the two stocks.

About Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.

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.