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

Profitability

This table compares Accelerate Diagnostics and Accuray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Accelerate Diagnostics -3,085.36% -60.99% -57.85%
Accuray -7.49% -55.18% -6.33%

Earnings & Valuation

This table compares Accelerate Diagnostics and Accuray’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accelerate Diagnostics $250,000.00 6,459.64 -$66.37 million ($1.20) -24.29
Accuray $383.41 million 1.07 -$29.57 million ($0.34) -14.41

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

Institutional and Insider Ownership

48.0% of Accelerate Diagnostics shares are owned by institutional investors. Comparatively, 78.9% of Accuray shares are owned by institutional investors. 50.0% of Accelerate Diagnostics shares are owned by company insiders. Comparatively, 3.9% of Accuray shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Accelerate Diagnostics has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Accelerate Diagnostics and Accuray, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Accelerate Diagnostics 0 0 2 0 3.00
Accuray 0 3 4 0 2.57

Accelerate Diagnostics presently has a consensus target price of $33.00, indicating a potential upside of 13.21%. Accuray has a consensus target price of $7.17, indicating a potential upside of 46.26%. Given Accuray’s higher probable upside, analysts plainly believe Accuray is more favorable than Accelerate Diagnostics.

Summary

Accuray beats Accelerate Diagnostics on 9 of the 13 factors compared between the two stocks.

About Accelerate Diagnostics

Accelerate Diagnostics, Inc. is an in vitro diagnostics company engaged in providing solutions that develop patient outcomes through the diagnosis of serious infections. The Company’s in vitro diagnostic platform, the Accelerate Pheno system utilizes genotypic technology to identify (ID), infectious pathogens and phenotypic technology to conduct antibiotic susceptibility testing (AST), which determines whether live bacterial or fungal cells are resistant or susceptible to a particular antibiotic. It detects and identifies pathogens directly from a single patient sample followed by antimicrobial susceptibility testing based on the identification results. The Accelerate PhenoTest BC Kit provides ID and AST results for patients suspected of bacteremia or fungemia, both life-threatening conditions with high morbidity and mortality risk. The Accelerate Pheno system features walk-away automation and consists of a fixed instrument and single-use test kit.

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.

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