Varian Medical Systems (NYSE:VAR) and 21st North (OTCMKTS:ULGX) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
92.7% of Varian Medical Systems shares are owned by institutional investors. Comparatively, 0.3% of 21st North shares are owned by institutional investors. 0.8% of Varian Medical Systems shares are owned by insiders. Comparatively, 8.5% of 21st North shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Varian Medical Systems and 21st North, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||3||2||0||1.88|
Varian Medical Systems currently has a consensus target price of $116.00, indicating a potential downside of 2.82%. Given Varian Medical Systems’ higher probable upside, equities research analysts clearly believe Varian Medical Systems is more favorable than 21st North.
This table compares Varian Medical Systems and 21st North’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%|
Risk and Volatility
Varian Medical Systems has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, 21st North has a beta of 5.87, indicating that its stock price is 487% more volatile than the S&P 500.
Earnings and Valuation
This table compares Varian Medical Systems and 21st North’s top-line 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||3.74||$149.90 million||$4.42||27.01|
Varian Medical Systems has higher revenue and earnings than 21st North.
Varian Medical Systems beats 21st North on 7 of the 9 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 Varian Particle Therapy. The Oncology Systems segment provides 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. Its products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment, and accessories; 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, oncology practices, radiotherapy centers, and cancer care clinics. The Varian Particle Therapy segment develops, designs, 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.
About 21st North
Urologix, Inc. develops, manufactures, markets, and distributes minimally invasive medical products for the treatment of obstruction and symptoms due to benign prostatic hyperplasia (BPH) in the United States. The company offers Cooled ThermoTherapy, which produces targeted microwave energy combined with a cooling mechanism to protect healthy tissue and enhance patient comfort. It also provides Prostiva RF Therapy System that delivers radio frequency energy directly into the prostate to destroy prostate tissue, reduce constriction of the urethra, and relieve BPH symptoms. It serves patients and clinicians. Urologix, Inc. was founded in 1991 and is based in Minneapolis, Minnesota.
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