Head to Head Contrast: PROCEPT BioRobotics (NASDAQ:PRCT) & Varex Imaging (NASDAQ:VREX)

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

Risk and Volatility

Varex Imaging has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, PROCEPT BioRobotics has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Varex Imaging and PROCEPT BioRobotics”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	35.56
PROCEPT BioRobotics	$337.34 million	3.15	-$95.57 million	($1.94)	-9.55

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

Profitability

This table compares Varex Imaging and PROCEPT BioRobotics’ 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%
PROCEPT BioRobotics	-32.53%	-30.62%	-22.10%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Varex Imaging and PROCEPT BioRobotics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	0	7	0	0	2.00
PROCEPT BioRobotics	2	9	3	1	2.20

Varex Imaging presently has a consensus price target of $16.88, indicating a potential downside of 8.73%. PROCEPT BioRobotics has a consensus price target of $25.09, indicating a potential upside of 35.41%. Given PROCEPT BioRobotics’ stronger consensus rating and higher possible upside, analysts clearly believe PROCEPT BioRobotics is more favorable than Varex Imaging.

Institutional and Insider Ownership

89.5% of PROCEPT BioRobotics shares are held by institutional investors. 4.6% of Varex Imaging shares are held by company insiders. Comparatively, 4.0% of PROCEPT BioRobotics shares are held 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.

Summary

Varex Imaging beats PROCEPT BioRobotics on 9 of the 15 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 PROCEPT BioRobotics

PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. The company develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). It also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in San Jose, California.