Varian Medical Systems (NYSE: VAR) is one of 80 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its rivals? We will compare Varian Medical Systems to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, profitability, analyst recommendations and dividends.

Risk and Volatility

Varian Medical Systems has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Varian Medical Systems’ rivals have a beta of 1.27, indicating that their average stock price is 27% more volatile than the S&P 500.

Profitability

This table compares Varian Medical Systems and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Varian Medical Systems 8.85% 23.68% 10.74%
Varian Medical Systems Competitors -311.46% -23.92% -9.65%

Institutional & Insider Ownership

99.2% of Varian Medical Systems shares are owned by institutional investors. Comparatively, 50.7% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 0.9% of Varian Medical Systems shares are owned by company insiders. Comparatively, 18.3% of shares of all “Advanced Medical Equipment & Technology” companies are owned 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.

Analyst Ratings

This is a breakdown of recent ratings for Varian Medical Systems and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varian Medical Systems 2 7 1 0 1.90
Varian Medical Systems Competitors 271 1886 3396 108 2.59

Varian Medical Systems presently has a consensus price target of $98.39, indicating a potential downside of 12.47%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 9.42%. Given Varian Medical Systems’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Varian Medical Systems has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Varian Medical Systems and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Varian Medical Systems $2.67 billion $249.60 million 40.73
Varian Medical Systems Competitors $2.14 billion $229.91 million -32.98

Varian Medical Systems has higher revenue and earnings than its rivals. Varian Medical Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Varian Medical Systems beats its rivals on 7 of the 13 factors compared.

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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