Head to Head Survey: NeurAxis (NASDAQ:NRXS) & Varex Imaging (NASDAQ:VREX)

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

Risk and Volatility

NeurAxis has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares NeurAxis and Varex Imaging”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeurAxis	$5.32 million	18.31	-$14.63 million	($0.78)	-9.94
Varex Imaging	$844.60 million	0.92	-$70.30 million	$0.52	35.52

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

Insider & Institutional Ownership

11.8% of NeurAxis shares are held by institutional investors. 21.1% of NeurAxis shares are held by insiders. Comparatively, 4.6% of Varex Imaging shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for NeurAxis and Varex Imaging, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeurAxis	0	0	1	0	3.00
Varex Imaging	0	7	0	0	2.00

NeurAxis currently has a consensus target price of $13.00, suggesting a potential upside of 67.74%. Varex Imaging has a consensus target price of $16.88, suggesting a potential downside of 8.64%. Given NeurAxis’ stronger consensus rating and higher possible upside, analysts plainly believe NeurAxis is more favorable than Varex Imaging.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeurAxis	-492.76%	N/A	-641.25%
Varex Imaging	2.55%	9.19%	4.13%

Summary

NeurAxis beats Varex Imaging on 8 of the 14 factors compared between the two stocks.

About NeurAxis

NeurAxis, Inc., a medical technology company, focuses on developing neuromodulation therapies to address chronic and debilitating conditions in children and adults in the United States. It offers IB-Stim, a percutaneous electrical nerve field stimulation system intended to be used in patients 11-18 years of age with functional abdominal pain associated with irritable bowel syndrome. The company sells its products to healthcare companies, including hospitals and clinics. The company was formerly known as Innovative Health Solutions, Inc. and changed its name to NeurAxis, Inc. in March 2022. The company was founded in 2011 and is headquartered in Carmel, Indiana.

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.