Head-To-Head Survey: Viewray (NASDAQ:VRAY) & Semler Scientific (NASDAQ:SMLR)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Viewray and Semler Scientific, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viewray 0 1 8 0 2.89
Semler Scientific 0 0 2 0 3.00

Viewray currently has a consensus target price of $13.11, indicating a potential upside of 49.84%. Semler Scientific has a consensus target price of $44.00, indicating a potential upside of 0.00%. Given Viewray’s higher probable upside, equities research analysts plainly believe Viewray is more favorable than Semler Scientific.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viewray $80.96 million 10.48 -$76.40 million ($0.98) -8.93
Semler Scientific $21.49 million 13.22 $5.01 million $0.66 66.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
Viewray -139.82% -71.16% -35.84%
Semler Scientific 25.90% 191.41% 84.63%

Risk & Volatility

Viewray has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Semler Scientific has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

12.0% of Semler Scientific shares are owned by institutional investors. 15.5% of Viewray shares are owned by insiders. Comparatively, 13.9% of Semler Scientific shares are owned 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

Semler Scientific beats Viewray on 9 of the 14 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 Semler Scientific

Semler Scientific, Inc. develops, manufactures, and markets proprietary products that assist healthcare providers to evaluate and treat patients with chronic diseases in the United States. Its products include QuantaFlo, a four-minute in-office blood flow test that enables healthcare providers to use blood flow measurements as part of their examinations of a patient's vascular condition. The company's products serve cardiologists, internists, nephrologists, endocrinologists, podiatrists, and family practitioners, as well as healthcare insurance plans, integrated delivery networks, independent physician groups, and companies contracting with the healthcare industry, such as risk assessment groups. It offers its products through salespersons and distributors. Semler Scientific, Inc. was founded in 2007 and is headquartered in San Jose, California.

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