Comparing Varex Imaging (NASDAQ:VREX) and Pulse Biosciences (NASDAQ:PLSE)

Varex Imaging (NASDAQ:VREX) and Pulse Biosciences (NASDAQ:PLSE) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility and Risk

Varex Imaging has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Pulse Biosciences has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Varex Imaging and Pulse Biosciences’ 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%
Pulse Biosciences	-6,755.78%	-94.42%	-79.96%

Earnings & Valuation

This table compares Varex Imaging and Pulse Biosciences”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	35.42
Pulse Biosciences	$350,000.00	10,379.28	-$72.78 million	($1.18)	-43.48

Varex Imaging has higher revenue and earnings than Pulse Biosciences. Pulse Biosciences 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 summary of current recommendations and price targets for Varex Imaging and Pulse Biosciences, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	0	7	0	0	2.00
Pulse Biosciences	1	0	5	1	2.86

Varex Imaging currently has a consensus price target of $16.88, indicating a potential downside of 8.39%. Pulse Biosciences has a consensus price target of $60.20, indicating a potential upside of 17.33%. Given Pulse Biosciences’ stronger consensus rating and higher probable upside, analysts clearly believe Pulse Biosciences is more favorable than Varex Imaging.

Insider and Institutional Ownership

77.0% of Pulse Biosciences shares are owned by institutional investors. 4.6% of Varex Imaging shares are owned by company insiders. Comparatively, 74.0% of Pulse Biosciences shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Pulse Biosciences beats Varex Imaging 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 Pulse Biosciences

Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. The company offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was incorporated in 2014 and is headquartered in Hayward, California.