Contrasting IceCure Medical (NASDAQ:ICCM) & Varex Imaging (NASDAQ:VREX)

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

Risk & Volatility

Varex Imaging has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, IceCure Medical has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Institutional & Insider Ownership

0.6% of IceCure Medical shares are owned by institutional investors. 4.6% of Varex Imaging shares are owned by insiders. Comparatively, 2.4% of IceCure Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Varex Imaging and IceCure Medical’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%
IceCure Medical	-427.67%	-174.26%	-112.58%

Valuation & Earnings

This table compares Varex Imaging and IceCure Medical”s top-line revenue, earnings per share 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	35.54
IceCure Medical	$3.38 million	1.98	-$15.06 million	($8.52)	-0.23

IceCure Medical has lower revenue, but higher earnings than Varex Imaging. IceCure Medical 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 recent ratings and target prices for Varex Imaging and IceCure Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	0	7	0	0	2.00
IceCure Medical	2	0	3	0	2.20

Varex Imaging presently has a consensus target price of $16.88, indicating a potential downside of 8.69%. IceCure Medical has a consensus target price of $52.50, indicating a potential upside of 2,592.31%. Given IceCure Medical’s stronger consensus rating and higher possible upside, analysts plainly believe IceCure Medical is more favorable than Varex Imaging.

Summary

Varex Imaging beats IceCure Medical 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 IceCure Medical

IceCure Medical Ltd, a commercial stage medical device company, engages in the research, development, and marketing of cryoablation systems, disposables, and technologies for treating tumors. The company offers ProSense system, a single probe system for the treatment of tumors, as well as associated disposables; and IceSense3 system for ablation indications to urology, oncology, dermatology, gynecology, general surgery, thoracic surgery, and proctology. It also develops XSense system, a single probe system; and MultiSense, a multi probe system for the treatment of multiple and larger tumors. The company was incorporated in 2006 and is headquartered in Caesarea, Israel.