Veracyte (NASDAQ:VCYT – Get Free Report) and Accuray (NASDAQ:ARAY – Get Free Report) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Profitability
This table compares Veracyte and Accuray’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veracyte | 16.25% | 9.07% | 8.38% |
| Accuray | -10.76% | -79.43% | -10.38% |
Analyst Ratings
This is a breakdown of recent ratings for Veracyte and Accuray, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veracyte | 1 | 3 | 4 | 1 | 2.56 |
| Accuray | 1 | 2 | 0 | 0 | 1.67 |
Insider and Institutional Ownership
64.1% of Accuray shares are held by institutional investors. 1.4% of Veracyte shares are held by insiders. Comparatively, 4.4% of Accuray shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Veracyte and Accuray”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veracyte | $517.15 million | 7.30 | $66.35 million | $1.09 | 43.42 |
| Accuray | $458.51 million | 0.09 | -$1.59 million | ($0.37) | -0.92 |
Veracyte has higher revenue and earnings than Accuray. Accuray is trading at a lower price-to-earnings ratio than Veracyte, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Veracyte has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
Summary
Veracyte beats Accuray on 12 of the 15 factors compared between the two stocks.
About Veracyte
Veracyte, Inc. engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.
About Accuray
Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Asia, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, and China. It offers the CyberKnife platform, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy platform, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.
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