NeurAxis (NASDAQ:NRXS) & Varex Imaging (NASDAQ:VREX) Head-To-Head Contrast

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

Institutional & Insider Ownership

11.8% of NeurAxis shares are held by institutional investors. 4.6% of Varex Imaging shares are held by insiders. Comparatively, 21.1% of NeurAxis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Varex Imaging and NeurAxis’ 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%
NeurAxis	-492.76%	N/A	-641.25%

Risk and Volatility

Varex Imaging has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, NeurAxis has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares Varex Imaging and NeurAxis”s top-line 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	0.92	-$70.30 million	$0.52	35.52
NeurAxis	$5.32 million	18.31	-$14.63 million	($0.78)	-9.94

NeurAxis has lower revenue, but higher earnings than Varex Imaging. NeurAxis 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 Ratings

This is a breakdown of recent ratings and recommmendations for Varex Imaging and NeurAxis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	0	7	0	0	2.00
NeurAxis	0	0	1	0	3.00

Varex Imaging currently has a consensus price target of $16.88, suggesting a potential downside of 8.64%. NeurAxis has a consensus price target of $13.00, suggesting a potential upside of 67.74%. Given NeurAxis’ stronger consensus rating and higher possible upside, analysts plainly believe NeurAxis is more favorable than Varex Imaging.

Summary

NeurAxis beats Varex Imaging on 8 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 NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.