Critical Contrast: Varian Medical Systems (VAR) vs. Mindray Medical International (MR)

Mindray Medical International (NYSE: MR) and Varian Medical Systems (NYSE:VAR) are both companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

This table compares Mindray Medical International and Varian Medical Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mindray Medical International 15.93% 12.70% 8.37%
Varian Medical Systems 4.27% 27.13% 11.95%

Valuation and Earnings

This table compares Mindray Medical International and Varian Medical Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mindray Medical International N/A N/A N/A N/A N/A
Varian Medical Systems $2.67 billion 4.03 $249.60 million $3.60 32.68

Varian Medical Systems has higher revenue and earnings than Mindray Medical International.

Dividends

Mindray Medical International pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Varian Medical Systems does not pay a dividend.

Insider & Institutional Ownership

99.2% of Varian Medical Systems shares are held by institutional investors. 0.8% of Varian Medical Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Mindray Medical International and Varian Medical Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mindray Medical International 0 0 0 0 N/A
Varian Medical Systems 3 5 3 0 2.00

Varian Medical Systems has a consensus price target of $108.44, suggesting a potential downside of 7.82%. Given Varian Medical Systems’ higher possible upside, analysts plainly believe Varian Medical Systems is more favorable than Mindray Medical International.

Summary

Varian Medical Systems beats Mindray Medical International on 7 of the 9 factors compared between the two stocks.

About Mindray Medical International

Mindray Medical International Limited is a developer, manufacturer and marketer of medical devices across the world. The Company operates in three segments: patient monitoring and life support products, in-vitro diagnostic products and medical imaging systems. Its patient monitoring devices track the physiological parameters of patients, such as heart rate, blood pressure, respiration and temperature. It offers patient monitoring devices that are suitable for adult, pediatric and neonatal patients and are used principally in hospital intensive care units, operating rooms and emergency rooms. Its life support products provide operation room or intensive care unit solutions for the end users in the operating room. Its in-vitro diagnostic products provide data and analysis on blood, urine and other bodily fluid samples for clinical diagnosis and treatment. Its medical imaging systems segment includes ultrasound systems, digital radiography systems and a magnetic resonance imaging system.

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.

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