Varian Medical Systems (NYSE: VAR) is one of 80 publicly-traded companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its peers? We will compare Varian Medical Systems to similar businesses based on the strength of its risk, institutional ownership, profitability, dividends, earnings, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Varian Medical Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varian Medical Systems 2 7 1 0 1.90
Varian Medical Systems Competitors 271 1878 3374 108 2.59

Varian Medical Systems currently has a consensus price target of $97.83, suggesting a potential downside of 10.27%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 7.91%. Given Varian Medical Systems’ peers stronger consensus rating and higher probable upside, analysts clearly believe Varian Medical Systems has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Varian Medical Systems 8.85% 23.68% 10.74%
Varian Medical Systems Competitors -312.53% -28.44% -10.33%

Insider and Institutional Ownership

99.2% of Varian Medical Systems shares are owned by institutional investors. Comparatively, 50.4% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 0.9% of Varian Medical Systems shares are owned by insiders. Comparatively, 18.4% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Varian Medical Systems has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Varian Medical Systems’ peers have a beta of 1.29, indicating that their average stock price is 29% more volatile than the S&P 500.

Earnings and Valuation

This table compares Varian Medical Systems and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Varian Medical Systems $2.67 billion $249.60 million 39.50
Varian Medical Systems Competitors $2.13 billion $229.91 million -33.77

Varian Medical Systems has higher revenue and earnings than its peers. Varian Medical Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Varian Medical Systems beats its peers on 7 of the 13 factors compared.

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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