Viewray (VRAY) versus Agilent Technologies (A) Critical Contrast

Viewray (NASDAQ: VRAY) and Agilent Technologies (NYSE:A) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility & Risk

Viewray has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, Agilent Technologies has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares Viewray and Agilent Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viewray $22.24 million 23.32 -$50.63 million ($1.13) -6.80
Agilent Technologies $4.47 billion 4.90 $684.00 million $2.10 32.32

Agilent Technologies has higher revenue and earnings than Viewray. Viewray is trading at a lower price-to-earnings ratio than Agilent Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Viewray and Agilent Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viewray -193.53% N/A -59.34%
Agilent Technologies 15.30% 16.95% 9.43%

Insider and Institutional Ownership

50.5% of Viewray shares are owned by institutional investors. 62.8% of Viewray 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.

Dividends

Agilent Technologies pays an annual dividend of $0.60 per share and has a dividend yield of 0.9%. Viewray does not pay a dividend. Agilent Technologies pays out 28.6% of its earnings in the form of a dividend. Viewray has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Viewray and Agilent Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viewray 0 0 5 0 3.00
Agilent Technologies 0 3 10 0 2.77

Viewray currently has a consensus price target of $11.20, indicating a potential upside of 45.83%. Agilent Technologies has a consensus price target of $70.21, indicating a potential upside of 3.45%. Given Viewray’s stronger consensus rating and higher possible upside, analysts clearly believe Viewray is more favorable than Agilent Technologies.

Summary

Agilent Technologies beats Viewray on 10 of the 17 factors compared between the two stocks.

About Viewray

ViewRay, Inc. designs, manufactures and markets MRIdian, the magnetic resonance imaging (MRI)-guided radiation therapy system to image and treat cancer patients simultaneously. The Company offers radiation therapy technology combined with magnetic resonance imaging. MRIdian integrates MRI technology, radiation delivery and the Company’s software to locate, target and track the position and shape of soft-tissue tumors while radiation is delivered. MRIdian delivers radiation to the tumor accurately while delivering less radiation to healthy tissue. MRIdian provides real-time imaging that defines the targeted tumor from the surrounding soft tissue and other critical organs during radiation treatment. MRIdian allows physicians to record the level of radiation exposure that the tumor has received and adapt the prescription between fractions as needed.

About Agilent Technologies

Agilent Technologies, Inc. provides application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow. The Company serves the life sciences, diagnostics and applied chemical markets. It has three business segments: life sciences and applied markets business, diagnostics and genomics business, and Agilent CrossLab business. Its life sciences and applied markets business segment offers instruments and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular level. Its diagnostics and genomics business segment includes the reagent partnership, pathology, companion diagnostics, genomics and the nucleic acid solutions businesses. Its Agilent CrossLab business segment spans the entire lab with its consumables and services portfolio.

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