Analyzing BIOLASE (BIOL) and Viewray (VRAY)

BIOLASE (NASDAQ: BIOL) and Viewray (NASDAQ:VRAY) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for BIOLASE and Viewray, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BIOLASE 0 0 1 0 3.00
Viewray 0 0 6 0 3.00

BIOLASE presently has a consensus target price of $2.50, indicating a potential upside of 481.40%. Viewray has a consensus target price of $11.58, indicating a potential upside of 40.57%. Given BIOLASE’s higher possible upside, equities analysts clearly believe BIOLASE is more favorable than Viewray.

Volatility and Risk

BIOLASE has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Viewray has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.

Insider and Institutional Ownership

29.2% of BIOLASE shares are owned by institutional investors. Comparatively, 51.2% of Viewray shares are owned by institutional investors. 7.1% of BIOLASE shares are owned by company insiders. Comparatively, 62.8% of Viewray shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares BIOLASE and Viewray’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BIOLASE $51.81 million 0.85 -$15.37 million ($0.33) -1.30
Viewray $22.24 million 25.02 -$50.63 million ($1.13) -7.29

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

Profitability

This table compares BIOLASE and Viewray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BIOLASE -36.28% -74.51% -40.81%
Viewray -193.53% N/A -59.34%

Summary

BIOLASE beats Viewray on 8 of the 13 factors compared between the two stocks.

BIOLASE Company Profile

BIOLASE, Inc. (BIOLASE) is a medical device company that develops, manufactures, markets and sells laser systems in dentistry and medicine. The Company markets, sells, and distributes dental imaging equipment, including cone beam digital x-rays and computer-aided design (CAD)/computer-aided manufacturing (CAM) intra-oral scanners, in-office, chair-side milling machines and three-dimensional (3-D) printers. It offers two categories of laser system products: WaterLase (all-tissue) systems and Diode (soft tissue) systems. Its brand, WaterLase, uses a combination of water and laser energy to perform procedures performed using drills, scalpels, and other traditional dental instruments for cutting soft and hard tissue. It also offers its Diode laser systems to perform soft tissue, pain therapy, and cosmetic procedures, including teeth whitening. Its Waterlase and Diode systems use disposable laser tips of differing sizes and shapes depending on the procedures being performed.

Viewray Company Profile

ViewRay, Inc. designs, manufactures and markets MRIdian, the magnetic resonance imaging (MRI)-guided radiation therapy system to image and treat cancer patients simultaneously. The Company offers radiation therapy technology combined with magnetic resonance imaging. MRIdian integrates MRI technology, radiation delivery and the Company’s software to locate, target and track the position and shape of soft-tissue tumors while radiation is delivered. MRIdian delivers radiation to the tumor accurately while delivering less radiation to healthy tissue. MRIdian provides real-time imaging that defines the targeted tumor from the surrounding soft tissue and other critical organs during radiation treatment. MRIdian allows physicians to record the level of radiation exposure that the tumor has received and adapt the prescription between fractions as needed.

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