Contrasting Neovasc (NVCN) and Accuray (ARAY)

Neovasc (NASDAQ: NVCN) and Accuray (NASDAQ:ARAY) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

This table compares Neovasc and Accuray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Neovasc -1,687.90% -85.81% -52.15%
Accuray -7.00% -52.91% -6.25%

Insider & Institutional Ownership

2.4% of Neovasc shares are owned by institutional investors. Comparatively, 85.5% of Accuray shares are owned by institutional investors. 3.9% of Accuray shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Neovasc has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Neovasc and Accuray, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neovasc 0 0 2 0 3.00
Accuray 1 2 3 0 2.33

Neovasc currently has a consensus target price of $1.25, indicating a potential upside of 3,676.44%. Accuray has a consensus target price of $7.40, indicating a potential upside of 57.45%. Given Neovasc’s stronger consensus rating and higher probable upside, research analysts plainly believe Neovasc is more favorable than Accuray.

Earnings and Valuation

This table compares Neovasc and Accuray’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Neovasc $5.39 million 10.32 -$22.90 million ($0.37) -0.09
Accuray $383.41 million 1.05 -$29.57 million ($0.36) -13.06

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

Summary

Accuray beats Neovasc on 9 of the 14 factors compared between the two stocks.

Neovasc Company Profile

Neovasc Inc., a specialty medical device company, develops, manufactures, and markets cardiovascular devices worldwide. Its products include the Tiara technology for the transcatheter treatment of mitral valve disease; and the Neovasc Reducer for the treatment of refractory angina. The company also provides Peripatch tissue products. The company was formerly known as Medical Ventures Corp. and changed its name to Neovasc Inc. in July 2008. Neovasc Inc. was incorporated in 2000 and is headquartered in Richmond, Canada.

Accuray Company Profile

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. The company offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body. The CyberKnife System automatically tracks, detects, and corrects for tumor and patient movement in real-time during the procedure, as well as enables the delivery of precise, high dose radiation while patients breathe normally. It also offers the TomoTherapy System, which consists of an integrated and versatile radiation therapy system used for the treatment of a range of cancer types. The company markets its products in the United States directly, as well as through a sales agent and group purchasing organizations; and directly and through distributors and sales agents in Europe, Japan and other countries of Asia, South America, and internationally to hospitals and stand-alone treatment facilities. Accuray Incorporated was incorporated in 1990 and is headquartered in Sunnyvale, California.

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