Abaxis (NASDAQ: ABAX) and Varian Medical Systems (NYSE:VAR) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Abaxis pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. Varian Medical Systems does not pay a dividend. Abaxis pays out 59.3% of its earnings in the form of a dividend.
This table compares Abaxis and Varian Medical Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Abaxis||$227.22 million||7.16||$32.71 million||$1.08||66.38|
|Varian Medical Systems||$2.67 billion||4.33||$249.60 million||$1.25||101.24|
Varian Medical Systems has higher revenue and earnings than Abaxis. Abaxis is trading at a lower price-to-earnings ratio than Varian Medical Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Abaxis and Varian Medical Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||5||3||0||2.00|
Abaxis presently has a consensus target price of $56.63, indicating a potential downside of 21.01%. Varian Medical Systems has a consensus target price of $108.44, indicating a potential downside of 14.31%. Given Varian Medical Systems’ higher probable upside, analysts plainly believe Varian Medical Systems is more favorable than Abaxis.
This table compares Abaxis and Varian Medical Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||4.27%||27.13%||11.95%|
Insider and Institutional Ownership
96.6% of Abaxis shares are held by institutional investors. Comparatively, 98.3% of Varian Medical Systems shares are held by institutional investors. 4.3% of Abaxis shares are held by insiders. Comparatively, 0.8% of Varian Medical Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Abaxis has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Varian Medical Systems has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Varian Medical Systems beats Abaxis on 10 of the 15 factors compared between the two stocks.
Abaxis, Inc. is a developer, manufacturer and marketer of portable blood analysis systems that are used in medical specialties in human or veterinary patient care to provide clinicians with blood constituent measurements. The Company markets and sells its products around the world through independent distributors and direct sales force. The Company’s segments are the medical market and the veterinary market. The Company’s medical market products include Piccolo chemistry analyzers and consumable products. The Company develops, manufactures and sells the Piccolo Xpress chemistry analyzer for use in human patient care to provide clinicians with blood constituent measurements. The Company’s veterinary market product offerings include VetScan chemistry analyzers and veterinary reagent discs, VetScan hematology instruments and related reagent kits, VetScan VSpro specialty analyzers and related consumables, VetScan i-STAT analyzers and related consumables and VetScan rapid tests.
About Varian Medical Systems
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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