Natus Medical (NASDAQ: BABY) and Accuray (NASDAQ:ARAY) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.
Earnings & Valuation
This table compares Natus Medical and Accuray’s gross revenue, earnings per share and valuation.
||Earnings Per Share
Natus Medical has higher earnings, but lower revenue than Accuray. Natus Medical is trading at a lower price-to-earnings ratio than Accuray, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Natus Medical and Accuray, as provided by MarketBeat.com.
||Strong Buy Ratings
Natus Medical currently has a consensus target price of $49.00, indicating a potential upside of 73.45%. Accuray has a consensus target price of $7.17, indicating a potential upside of 35.22%. Given Natus Medical’s higher possible upside, analysts plainly believe Natus Medical is more favorable than Accuray.
Institutional and Insider Ownership
99.9% of Natus Medical shares are held by institutional investors. Comparatively, 78.9% of Accuray shares are held by institutional investors. 5.5% of Natus Medical shares are held by company insiders. Comparatively, 3.9% of Accuray shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Natus Medical and Accuray’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Volatility & Risk
Natus Medical has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Accuray has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.
Natus Medical beats Accuray on 9 of the 14 factors compared between the two stocks.
About Natus Medical
Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company’s product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.
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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