Head to Head Review: Waters (WAT) vs. Viewray (VRAY)

Waters (NYSE: WAT) and Viewray (NASDAQ:VRAY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Waters and Viewray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waters 0.88% 24.70% 11.89%
Viewray -193.53% N/A -59.34%

Volatility and Risk

Waters has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Viewray has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500.

Earnings and Valuation

This table compares Waters and Viewray’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waters $2.31 billion 7.03 $20.31 million $0.19 1,074.95
Viewray $22.24 million 25.42 -$50.63 million ($1.13) -7.41

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Waters and Viewray, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waters 0 11 6 0 2.35
Viewray 0 0 6 0 3.00

Waters presently has a consensus price target of $202.87, suggesting a potential downside of 0.67%. Viewray has a consensus price target of $11.58, suggesting a potential upside of 38.39%. Given Viewray’s stronger consensus rating and higher possible upside, analysts plainly believe Viewray is more favorable than Waters.

Institutional and Insider Ownership

93.4% of Waters shares are held by institutional investors. Comparatively, 51.2% of Viewray shares are held by institutional investors. 5.1% of Waters shares are held by insiders. Comparatively, 62.8% of Viewray shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Waters beats Viewray on 9 of the 13 factors compared between the two stocks.

About Waters

Waters Corporation is an analytical instrument manufacturer. The Company operates through two segments: Waters and TA. It designs, manufactures, sells and services high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and post-warranty service plans. It also designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments through its TA product line. It is also a developer and supplier of software-based products that interface with the Company’s instruments, as well as other suppliers’ instruments. Its LC and LC-MS instruments are utilized in a range of industries to detect, identify, monitor and measure the chemical, physical and biological composition of materials, and to purify a range of compounds.

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.

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