Critical Analysis: Glucose Health (OTCMKTS:GLUC) versus Varex Imaging (NASDAQ:VREX)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Varex Imaging and Glucose Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	1	1	2	0	2.25
Glucose Health	0	0	0	0	0.00

Varex Imaging currently has a consensus price target of $16.17, suggesting a potential upside of 50.67%. Given Varex Imaging’s stronger consensus rating and higher probable upside, equities analysts plainly believe Varex Imaging is more favorable than Glucose Health.

Risk and Volatility

Varex Imaging has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Glucose Health has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Varex Imaging	-7.92%	8.43%	3.66%
Glucose Health	-108.70%	N/A	N/A

Valuation and Earnings

This table compares Varex Imaging and Glucose Health”s gross 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	0.53	-$70.30 million	($1.64)	-6.54
Glucose Health	$380,000.00	20.06	-$320,000.00	($0.03)	-12.42

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

Summary

Varex Imaging beats Glucose Health on 8 of the 12 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 Glucose Health

Glucose Health, Inc. engages in the formulation, manufacturing, marketing, and distribution of soluble fiber infused nutritional beverages. It offers soluble fiber infused powdered iced tea, and flavored drink mixes for pre-diabetic and diabetic persons under the GLUCODOWN brand in North America. The company was formerly known as Bio-Solutions Corp. and changed its name to Glucose Health, Inc. in November 2014. Glucose Health, Inc. was incorporated in 2007 and is based in Bentonville, Arkansas.