Accuray (ARAY) vs. Natus Medical (BABY) Head to Head Survey

Accuray (NASDAQ: ARAY) and Natus Medical (NASDAQ:BABY) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Earnings & Valuation

This table compares Accuray and Natus Medical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accuray $383.41 million 1.16 -$29.57 million ($0.34) -15.59
Natus Medical $381.89 million 2.30 $42.59 million ($0.09) -313.85

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Accuray and Natus Medical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accuray 1 2 4 0 2.43
Natus Medical 0 2 1 0 2.33

Accuray currently has a consensus price target of $7.17, indicating a potential upside of 35.22%. Natus Medical has a consensus price target of $49.00, indicating a potential upside of 73.45%. Given Natus Medical’s higher possible upside, analysts plainly believe Natus Medical is more favorable than Accuray.

Institutional & Insider Ownership

78.9% of Accuray shares are held by institutional investors. Comparatively, 99.9% of Natus Medical shares are held by institutional investors. 3.9% of Accuray shares are held by company insiders. Comparatively, 5.5% of Natus Medical shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Accuray -7.49% -55.18% -6.33%
Natus Medical -6.94% -8.02% -5.00%

Volatility & Risk

Accuray has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Natus Medical has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Summary

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

About Accuray

Accuray Incorporated is a radiation oncology company. The Company develops, manufactures and markets medical devices used in radiation therapy for the treatment of cancer patients. Its products include the CyberKnife Systems, the TomoTherapy Systems, and the Radixact Delivery Treatment Platform. Its technologies, the CyberKnife and TomoTherapy Systems, are designed to deliver treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image guided radiation therapy (IGRT) and adaptive radiation therapy. The CyberKnife Systems are robotic systems that are used to treat various types of cancer and tumors throughout the body. The CyberKnife Systems track, detect and correct for tumor and patient movement in real-time during the procedure. The TomoTherapy Systems include the TomoTherapy H Series with configuration options of TomoH, TomoHD and TomoHDA.

About Natus Medical

Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company’s product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.

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