Fonar (FONR) vs. Viewray (VRAY) Financial Survey

Viewray (NASDAQ:VRAY) and Fonar (NASDAQ:FONR) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

92.5% of Viewray shares are owned by institutional investors. Comparatively, 52.7% of Fonar shares are owned by institutional investors. 43.9% of Viewray shares are owned by company insiders. Comparatively, 3.0% of Fonar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Viewray and Fonar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viewray 0 0 7 0 3.00
Fonar 0 0 0 0 N/A

Viewray currently has a consensus price target of $12.79, indicating a potential upside of 38.98%. Given Viewray’s higher possible upside, analysts clearly believe Viewray is more favorable than Fonar.

Profitability

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

Net Margins Return on Equity Return on Assets
Viewray -83.84% -353.05% -46.00%
Fonar 24.41% 22.10% 19.00%

Earnings and Valuation

This table compares Viewray and Fonar’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viewray $34.04 million 20.33 -$72.17 million ($1.04) -8.85
Fonar $81.52 million 1.98 $21.23 million N/A N/A

Fonar has higher revenue and earnings than Viewray.

Risk and Volatility

Viewray has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Fonar has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Summary

Fonar beats Viewray on 7 of the 12 factors compared between the two stocks.

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.

About Fonar

FONAR Corporation, together with its subsidiaries, operates as a magnetic resonance imaging (MRI) company primarily in the Unites States. It is involved in the research, development, production, and marketing of medical scanning equipment, which uses principles of MRI for the detection and diagnosis of human diseases, abnormalities, other medical conditions, and injuries. The company operates in two segments, Manufacturing and Servicing of Medical Equipment, and Management of Diagnostic Imaging Centers. It provides Upright MRI scanner that allows patients to be scanned in weight-bearing conditions, such as standing, sitting, bending, or lying down. The company markets its scanners to private diagnostic imaging centers and hospitals. It also provides non-medical management services, including development, administration, office space leasing, facilities, equipment, supplies, staffing, credentialing, accounting, billing and collection, assistance with compliance matters, and practice growth and marketing strategies development and implementation services, as well as engages in the training and supervision of non-medical personnel for diagnostic imaging facilities. The company also exports its products to the United Arab Emirates, Switzerland, Canada, England, Germany, and Puerto Rico. It owns and operates 4 diagnostic imaging facilities in Florida; and manages 26 MRI scanning facilities, including 19 facilities located in New York and 7 situated in Florida. The company was founded in 1978 and is based in Melville, New York.

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