Varian Medical Systems (NYSE: VAR) and Echo Therapeutics (OTCMKTS:ECTE) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Insider & Institutional Ownership
94.2% of Varian Medical Systems shares are owned by institutional investors. 0.8% of Varian Medical Systems shares are owned by insiders. Comparatively, 7.0% of Echo Therapeutics shares 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.
Earnings & Valuation
This table compares Varian Medical Systems and Echo Therapeutics’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Varian Medical Systems||$2.67 billion||4.06||$249.60 million||$3.60||32.89|
|Echo Therapeutics||N/A||N/A||-$22.19 million||N/A||N/A|
Varian Medical Systems has higher revenue and earnings than Echo Therapeutics.
This is a summary of current recommendations and price targets for Varian Medical Systems and Echo Therapeutics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||2||4||2||0||2.00|
Varian Medical Systems currently has a consensus target price of $111.29, suggesting a potential downside of 6.01%. Given Varian Medical Systems’ higher probable upside, research analysts plainly believe Varian Medical Systems is more favorable than Echo Therapeutics.
This table compares Varian Medical Systems and Echo Therapeutics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||4.77%||27.99%||12.51%|
Risk & Volatility
Varian Medical Systems has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Echo Therapeutics has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.
Varian Medical Systems beats Echo Therapeutics on 8 of the 10 factors compared between the two stocks.
About Varian Medical Systems
Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through two segments, Oncology Systems and Varian Particle Therapy. The Oncology Systems segment provides hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. Its products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment, and accessories; and information management, treatment planning, image processing, clinical knowledge exchange, patient care management, decision-making support, and practice management software. This segment serves university research and community hospitals, private and governmental institutions, healthcare agencies, physicians' offices, oncology practices, radiotherapy centers, and cancer care clinics. The Varian Particle Therapy segment develops, designs, manufactures, sells, and services products and systems for delivering proton therapy for the treatment of cancer. Varian Medical Systems, Inc. has a strategic partnership with Siemens AG to co-develop new imaging and treatment solutions. The company was formerly known as Varian Associates, Inc. and changed its name to Varian Medical Systems, Inc. in April 1999. Varian Medical Systems, Inc. was founded in 1948 and is headquartered in Palo Alto, California.
About Echo Therapeutics
Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. It is developing continuous glucose monitoring (CGM) system, a needle-free wireless continuous glucose monitoring system in a hospital setting in the European Union. The company has a licensing agreement with Ferndale Pharma Group, Inc. to develop, manufacture, distribute, and market devices for skin preparation prior to the application of topical anesthetics or analgesics prior to a range of needle-based medical procedures in North America, the United Kingdom, South America, Australia, New Zealand, Switzerland, and other portions of the European Community. In addition, it has a license agreement with Handok Pharmaceuticals Co., Ltd. to develop, use, market, import, and sell CGM to medical facilities and individual consumers in South Korea; and a license, development, and commercialization agreement with Medical Technologies Innovation Asia, Ltd to research, develop, manufacture, and use CGM in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company was founded in 1989 and is headquartered in Iselin, New Jersey.
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