Varian Medical Systems (NYSE:VAR) and Vaso (OTCMKTS:VASO) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
95.7% of Varian Medical Systems shares are owned by institutional investors. 0.8% of Varian Medical Systems shares are owned by company insiders. Comparatively, 9.1% of Vaso shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Varian Medical Systems and Vaso’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||5.14%||27.54%||12.55%|
Earnings and Valuation
This table compares Varian Medical Systems and Vaso’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Varian Medical Systems||$2.92 billion||3.35||$149.90 million||$4.42||24.32|
|Vaso||$72.78 million||0.07||-$4.53 million||N/A||N/A|
Varian Medical Systems has higher revenue and earnings than Vaso.
This is a breakdown of current ratings and recommmendations for Varian Medical Systems and Vaso, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||3||3||0||2.00|
Varian Medical Systems presently has a consensus target price of $119.00, indicating a potential upside of 10.72%. Given Varian Medical Systems’ higher possible upside, analysts plainly believe Varian Medical Systems is more favorable than Vaso.
Risk & Volatility
Varian Medical Systems has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Vaso has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.
Varian Medical Systems beats Vaso on 10 of the 11 factors compared between the two stocks.
About Varian Medical Systems
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 Proton Solutions. The Oncology Systems segment offers 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, as well as related quality assurance equipment. Its products include linear accelerators, brachytherapy after loaders, treatment accessories, and quality assurance software; 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, medical oncology practices, radiotherapy centers, and cancer care clinics. The Proton Solutions segment designs, develops, 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.
Vaso Corporation operates in the healthcare equipment and information technology industries in the United States and internationally. The company operates through three segments: IT, Professional Sales Service, and Equipment. The IT segment primarily focuses on healthcare IT and managed network technology services. This segment offers managed diagnostic imaging applications, managed network infrastructure, managed network transport, and managed security services. The Professional Sales Service segment principally focuses on the sale of healthcare capital equipment for General Electric Healthcare (GEHC) into the health provider middle market. Its offerings include GEHC diagnostic imaging capital equipment, GEHC service agreements, and GEHC and third party financial services. The Equipment segment primarily focuses on the design, manufacture, sale, and service of proprietary medical devices. This segment provides Biox series Holter monitors and ambulatory blood pressure recorders; ARCS series analysis, reporting, and communication software for physiological signals, such as ECG and blood pressure; MobiCare multi-parameter wireless vital-sign monitoring systems; and Enhanced External Counterpulsaion therapy systems that are used for non-invasive, outpatient treatment of ischemic heart disease, as well as in-service and training support. The company was formerly known as Vasomedical, Inc. and changed its name to Vaso Corporation in November 2016. Vaso Corporation was founded in 1987 and is headquartered in Plainview, New York.
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