Contrasting Varex Imaging (NASDAQ:VREX) & LeMaitre Vascular (NASDAQ:LMAT)

Varex Imaging (NASDAQ:VREX) and LeMaitre Vascular (NASDAQ:LMAT) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Varex Imaging and LeMaitre Vascular’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Varex Imaging	2.55%	9.19%	4.13%
LeMaitre Vascular	25.02%	15.63%	10.06%

Risk & Volatility

Varex Imaging has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, LeMaitre Vascular has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Institutional and Insider Ownership

84.6% of LeMaitre Vascular shares are owned by institutional investors. 4.6% of Varex Imaging shares are owned by company insiders. Comparatively, 7.4% of LeMaitre Vascular shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Varex Imaging and LeMaitre Vascular”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varex Imaging	$844.60 million	0.93	-$70.30 million	$0.52	35.46
LeMaitre Vascular	$249.60 million	7.41	$57.73 million	$2.75	29.41

LeMaitre Vascular has lower revenue, but higher earnings than Varex Imaging. LeMaitre Vascular is trading at a lower price-to-earnings ratio than Varex Imaging, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Varex Imaging and LeMaitre Vascular, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	0	7	0	0	2.00
LeMaitre Vascular	0	6	3	0	2.33

Varex Imaging presently has a consensus target price of $16.88, indicating a potential downside of 8.49%. LeMaitre Vascular has a consensus target price of $105.60, indicating a potential upside of 30.55%. Given LeMaitre Vascular’s stronger consensus rating and higher probable upside, analysts clearly believe LeMaitre Vascular is more favorable than Varex Imaging.

Summary

LeMaitre Vascular beats Varex Imaging on 11 of the 14 factors compared between the two stocks.

About Varex Imaging

Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components. The company operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components, comprising X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. This segment's products are used in a range of applications, including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses. The Industrial segment designs, develops, manufactures, sells, and services Linatron X-ray linear accelerators, X-ray tubes, digital detectors, high voltage connectors, and coolers for use in security and inspection applications, such as baggage screening at airports, cargo screening at ports and borders, and nondestructive testing, irradiation, and inspection in various applications. The company sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. It has operations in North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation was incorporated in 2016 and is headquartered in Salt Lake City, Utah.

About LeMaitre Vascular

LeMaitre Vascular, Inc. develops, manufactures, and markets medical devices and implants used in the field of vascular surgery worldwide. It offers human cadaver tissue cryopreservation services; angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries; thrombectomy catheters for removing thrombi in the venous system; occlusion catheters that temporarily occlude the blood flow; and perfusion catheters to perfuse the blood and other fluids into the vasculature. The company also provides artegraft biologic graft, a bovine carotid artery used for dialysis access; XenoSure biologic patches, used for closure of vessels after surgical intervention; VascuCel and CardioCel biologic patches, used in vessel repair, heart repair and reconstruction, and neonatal repairs; cardiovascular patches; carotid shunts that temporarily shunt the blood to the brain during the removal of plaque in a carotid endarterectomy surgery; biosynthetic vascular graft indicated for lower extremity bypass and dialysis access; and vascular grafts used to bypass or replace diseased arteries. In addition, it offers radiopaque tape, a medical-grade tape applied to the skin that enables surgeons and interventionalists to cross-refer between the inside and the outside of a patient’s body and allows them to locate tributaries or lesions beneath the skin. Further, the company provides valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and closure systems to attach vessels to one another with titanium clips instead of sutures. It markets its products through a direct sales force and distributors. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.