Dextera Surgical (NASDAQ: DXTR) and Varian Medical Systems (NYSE:VAR) are both medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Dextera Surgical and Varian Medical Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dextera Surgical 0 0 2 0 3.00
Varian Medical Systems 2 6 2 0 2.00

Dextera Surgical currently has a consensus target price of $0.75, indicating a potential upside of 243.41%. Varian Medical Systems has a consensus target price of $94.94, indicating a potential downside of 7.17%. Given Dextera Surgical’s stronger consensus rating and higher probable upside, equities analysts clearly believe Dextera Surgical is more favorable than Varian Medical Systems.

Risk and Volatility

Dextera Surgical has a beta of -1.1, meaning that its stock price is 210% less volatile than the S&P 500. Comparatively, Varian Medical Systems has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dextera Surgical and Varian Medical Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dextera Surgical $3.42 million 1.14 -$13.98 million ($1.75) -0.12
Varian Medical Systems $3.27 billion 2.87 $643.00 million $3.04 33.64

Varian Medical Systems has higher revenue and earnings than Dextera Surgical. Dextera Surgical is trading at a lower price-to-earnings ratio than Varian Medical Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Dextera Surgical -441.88% N/A -169.94%
Varian Medical Systems 9.50% 24.70% 11.12%

Insider and Institutional Ownership

6.6% of Dextera Surgical shares are owned by institutional investors. Comparatively, 99.3% of Varian Medical Systems shares are owned by institutional investors. 10.4% of Dextera Surgical shares are owned by company insiders. Comparatively, 0.9% of Varian Medical Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Varian Medical Systems beats Dextera Surgical on 9 of the 12 factors compared between the two stocks.

Dextera Surgical Company Profile

Dextera Surgical Inc., formerly Cardica, Inc., designs and manufactures stapling devices that enable the advancement of minimally invasive surgical procedures. The Company is engaged in commercializing and developing its MicroCutter 5/80 stapler based on its staple-on-a-strip technology for use by thoracic, pediatric, bariatric, colorectal and general surgeons. Its MicroCutter 5/80 is a commercially available cartridge-based microcutter device with approximately five millimeter shaft diameter, over 80 degrees of articulation, and an approximately 30 millimeter staple line cleared for specified indications for use in the United States, and in the European Union (EU) for a range of indications for use. It designs, manufactures and markets automated anastomotic systems used by surgeons to perform anastomoses during on- or off-pump coronary artery bypass graft procedures and these products include the C-Port xA system, the C-Port Flex A system and the PAS-Port Proximal Anastomosis System.

Varian Medical Systems Company Profile

Varian Medical Systems, Inc. is a manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy. The Company also has Varian Particle Therapy (VPT) and the operations of the Ginzton Technology Center (GTC). Its VPT business develops, designs, manufactures, sells and services products and systems for delivering proton therapy, another form of external beam radiotherapy using proton beams for the treatment of cancer. Its ProBeam system is capable of delivering intensity modulated proton therapy (IMPT) using pencil beam scanning technology. Its ProBeam Compact is a single room proton therapy product.

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