Accuray (NASDAQ:ARAY) versus Elekta (OTCMKTS:EKTAY) Financial Comparison

Accuray (NASDAQ:ARAY) and Elekta (OTCMKTS:EKTAY) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Risk and Volatility

Accuray has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Elekta has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Accuray and Elekta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$428.57 million	0.11	-$1.59 million	($0.37)	-1.08
Elekta	$1.78 billion	1.19	-$55.30 million	($0.16)	-35.97

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

Insider and Institutional Ownership

64.1% of Accuray shares are owned by institutional investors. 4.4% of Accuray shares are owned by company insiders. Comparatively, 41.3% of Elekta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Accuray and Elekta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accuray	-10.76%	-79.43%	-10.38%
Elekta	-3.32%	10.67%	3.21%

Analyst Ratings

This is a breakdown of current ratings and price targets for Accuray and Elekta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	1	2	0	0	1.67
Elekta	1	1	0	0	1.50

Accuray presently has a consensus target price of $2.00, indicating a potential upside of 402.26%. Given Accuray’s stronger consensus rating and higher probable upside, equities analysts clearly believe Accuray is more favorable than Elekta.

Summary

Elekta beats Accuray on 7 of the 13 factors compared between the two stocks.

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.

About Elekta

Elekta AB (publ), a medical technology company, provides clinical solutions for treating cancer and brain disorders worldwide. The company offers Versa HD, a brain metastases solution; Elekta Unity for real-time MR visualization; Elekta Harmony, a linear accelerator; Elekta Infinity for treating a range of patients with simple-to-complex radiotherapy needs; Elekta Synergy, a digital accelerator for image guided radiation therapy; treatment and workflow management solutions; radiation and medical oncology; and other patient services. It also provides Elekta Studio, an image guided brachytherapy solution; ImagingRing, a mobile CT scanner; Oncentra Brachy, a smart tool that facilitate repetitive tasks; Venezia applicator that enables the oncologist to treat locally advanced cervical cancer; Elekta Flexitron afterloader for enabling the precise execution of all steps in the workflow; Geneva, an applicator for cervical cancer treatment; veterinary radiation therapy products; and Elekta Kaiku for personalized cancer care. In addition, the company offers stereotactic radiosurgery, such as Leksell Gamma Knife Icon for personalized radiation treatment; Leksell Gamma Knife Perfexion, a tool for radiosurgeons; and Elekta Esprit. Further, it provides neurosurgery products comprising Leksell Vantage Stereotactic System for intracranial neurosurgery; and Leksell Stereotactic System for minimally invasive stereotactic neurosurgery. The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.