Contrasting ABIOMED (ABMD) and Accuray (ARAY)
ABIOMED (NASDAQ: ABMD) and Accuray (NASDAQ:ARAY) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
This is a breakdown of recent recommendations for ABIOMED and Accuray, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ABIOMED currently has a consensus price target of $174.71, indicating a potential upside of 1.19%. Accuray has a consensus price target of $6.00, indicating a potential upside of 44.58%. Given Accuray’s higher possible upside, analysts clearly believe Accuray is more favorable than ABIOMED.
This table compares ABIOMED and Accuray’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
ABIOMED has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Accuray has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Insider & Institutional Ownership
89.7% of ABIOMED shares are held by institutional investors. Comparatively, 76.7% of Accuray shares are held by institutional investors. 7.0% of ABIOMED shares are held by company insiders. Comparatively, 2.9% of Accuray shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares ABIOMED and Accuray’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ABIOMED||$474.78 million||16.04||$110.92 million||$1.69||102.17|
ABIOMED has higher revenue and earnings than Accuray. Accuray is trading at a lower price-to-earnings ratio than ABIOMED, indicating that it is currently the more affordable of the two stocks.
ABIOMED beats Accuray on 11 of the 13 factors compared between the two stocks.
ABIOMED, Inc. is a provider of temporary percutaneous mechanical circulatory support devices. The Company offers care to heart failure patients. The Company operates in the segment of the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company develops, manufactures and markets products that are designed to enable the heart to rest, heal and recover by improving blood flow to the coronary arteries and end-organs and/or temporarily performing the pumping function of the heart. The Company’s product portfolio includes the Impella 2.5, Impella CP, Impella RP, Impella LD, Impella 5.0 and AB5000. The Company’s products are used in the cardiac catheterization lab (cath lab), by interventional cardiologists, the electrophysiology lab, the hybrid lab and in the heart surgery suite by heart surgeons.
Accuray Incorporated is a radiation oncology company. The Company develops, manufactures and markets medical devices used in radiation therapy for the treatment of cancer patients. Its products include the CyberKnife Systems, the TomoTherapy Systems, and the Radixact Delivery Treatment Platform. Its technologies, the CyberKnife and TomoTherapy Systems, are designed to deliver treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image guided radiation therapy (IGRT) and adaptive radiation therapy. The CyberKnife Systems are robotic systems that are used to treat various types of cancer and tumors throughout the body. The CyberKnife Systems track, detect and correct for tumor and patient movement in real-time during the procedure. The TomoTherapy Systems include the TomoTherapy H Series with configuration options of TomoH, TomoHD and TomoHDA.
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