Analyzing GlucoTrack (NASDAQ:GCTK) and Varex Imaging (NASDAQ:VREX)

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

Insider & Institutional Ownership

10.9% of GlucoTrack shares are held by institutional investors. 4.6% of Varex Imaging shares are held by company insiders. Comparatively, 0.7% of GlucoTrack shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Varex Imaging and GlucoTrack, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	1	0	2	0	2.33
GlucoTrack	1	0	0	0	1.00

Varex Imaging presently has a consensus price target of $17.00, indicating a potential upside of 21.95%. Given Varex Imaging’s stronger consensus rating and higher probable upside, analysts clearly believe Varex Imaging is more favorable than GlucoTrack.

Profitability

This table compares Varex Imaging and GlucoTrack’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Varex Imaging	-8.32%	7.19%	3.06%
GlucoTrack	N/A	-2,311.96%	-264.11%

Volatility & Risk

Varex Imaging has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, GlucoTrack has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Valuation & Earnings

This table compares Varex Imaging and GlucoTrack”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	0.69	-$70.30 million	($1.70)	-8.20
GlucoTrack	N/A	N/A	-$22.60 million	($34.62)	-0.06

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

Summary

Varex Imaging beats GlucoTrack on 9 of the 13 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 GlucoTrack

GlucoTrack, Inc., a medical device company, focused on the design, development, and commercialization of novel technologies for people with diabetes in the United States. It develops GlucoTrack, a noninvasive glucose monitoring device that helps people with diabetes and pre-diabetics to obtain blood glucose level readings without the pain. The company was formerly known as Integrity Applications, Inc. and changed its name to GlucoTrack, Inc. in November 2021. GlucoTrack, Inc. was founded in 2001 and is based in Rutherford, New Jersey.