Boston Scientific (NYSE: BSX) and Varian Medical Systems (NYSE:VAR) are both large-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Institutional & Insider Ownership
90.7% of Boston Scientific shares are held by institutional investors. Comparatively, 98.3% of Varian Medical Systems shares are held by institutional investors. 0.7% of Boston Scientific shares are held by insiders. Comparatively, 0.8% of Varian Medical Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Boston Scientific has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Varian Medical Systems has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Boston Scientific and Varian Medical Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||5||3||0||2.00|
Boston Scientific presently has a consensus target price of $30.94, suggesting a potential upside of 8.40%. Varian Medical Systems has a consensus target price of $108.44, suggesting a potential downside of 14.31%. Given Boston Scientific’s stronger consensus rating and higher probable upside, analysts clearly believe Boston Scientific is more favorable than Varian Medical Systems.
Valuation and Earnings
This table compares Boston Scientific and Varian Medical Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boston Scientific||$9.05 billion||4.34||$105.00 million||$0.07||407.71|
|Varian Medical Systems||$2.67 billion||4.33||$249.60 million||$3.65||34.67|
Varian Medical Systems has lower revenue, but higher earnings than Boston Scientific. Varian Medical Systems is trading at a lower price-to-earnings ratio than Boston Scientific, indicating that it is currently the more affordable of the two stocks.
This table compares Boston Scientific and Varian Medical Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||4.27%||27.13%||11.95%|
Varian Medical Systems beats Boston Scientific on 8 of the 15 factors compared between the two stocks.
Boston Scientific Company Profile
Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. The Company offers its products by seven businesses: Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology. It operates in three segments: Cardiovascular, Rhythm Management and MedSurg. Its Cardiovascular segment consists of Interventional Cardiology and Peripheral Interventions businesses. Rhythm Management consists of Cardiac Rhythm Management and Electrophysiology businesses. MedSurg consists of Endoscopy, Urology and Pelvic Health, and Neuromodulation businesses. Its Interventional Cardiology product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters and embolic protection devices and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures.
Varian Medical Systems Company Profile
Varian Medical Systems, Inc. is a manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy. The Company also has Varian Particle Therapy (VPT) and the operations of the Ginzton Technology Center (GTC). Its VPT business develops, designs, manufactures, sells and services products and systems for delivering proton therapy, another form of external beam radiotherapy using proton beams for the treatment of cancer. Its ProBeam system is capable of delivering intensity modulated proton therapy (IMPT) using pencil beam scanning technology. Its ProBeam Compact is a single room proton therapy product.
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