Vision Sciences (NASDAQ: VRAY) and Viewray (NASDAQ:VRAY) are both small-cap 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

Vision Sciences has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Viewray has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vision Sciences and Viewray’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vision Sciences $56.32 million 4.16 -$880,000.00 ($0.01) -385.00
Viewray $34.04 million 21.52 -$72.17 million ($1.04) -9.37

Vision Sciences has higher revenue and earnings than Viewray. Vision Sciences is trading at a lower price-to-earnings ratio than Viewray, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

14.5% of Vision Sciences shares are owned by institutional investors. Comparatively, 91.3% of Viewray shares are owned by institutional investors. 62.7% of Vision Sciences shares are owned by company insiders. Comparatively, 43.9% of Viewray 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 Vision Sciences and Viewray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vision Sciences -1.57% -1.39% -1.21%
Viewray -83.84% -353.05% -46.00%

Analyst Ratings

This is a breakdown of current ratings and price targets for Vision Sciences and Viewray, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vision Sciences 0 2 1 0 2.33
Viewray 0 0 6 0 3.00

Vision Sciences presently has a consensus target price of $4.58, indicating a potential upside of 19.05%. Viewray has a consensus target price of $12.58, indicating a potential upside of 29.19%. Given Viewray’s stronger consensus rating and higher probable upside, analysts clearly believe Viewray is more favorable than Vision Sciences.

Vision Sciences Company Profile

Cogentix Medical, Inc., a medical device company, designs, develops, manufactures, and markets fiberoptic and video endoscopy products under the PrimeSight brand worldwide. The company offers endoscopes, such as cystoscopes, laryngoscopes, transnasal esophagoscopes, and bronchoscopes for medical use; and borescopes for industrial use, as well as digital processing units for medical use. It also provides EndoSheath Protective Barrier, a sterile, single-use microbial barrier for use with flexible endoscopes. In addition, the company offers Urgent PC System, a neuromodulation system that delivers percutaneous tibial nerve stimulation for office-based treatment of overactive bladder; and Macroplastique, an injectable, urethral bulking agent for the treatment of adult female stress urinary incontinence. Further, it provides Macroplastique products for the treatment of vesicoureteral reflux; PTQ Implants to treat fecal incontinence; Urgent PC System for the treatment of fecal incontinence; and VOX Implants to enhance speech and swallowing function in patients with unilateral vocal cord paralysis. Additionally, the company distributes wound care products in the Netherlands and the United Kingdom. Cogentix Medical, Inc. sells its products through a direct sales force and a network of distributor organizations. The company was founded in 1987 and is headquartered in Minnetonka, Minnesota.

Viewray Company Profile

ViewRay, Inc. designs, manufactures and markets MRIdian, the magnetic resonance imaging (MRI)-guided radiation therapy system to image and treat cancer patients simultaneously. The Company offers radiation therapy technology combined with magnetic resonance imaging. MRIdian integrates MRI technology, radiation delivery and the Company’s software to locate, target and track the position and shape of soft-tissue tumors while radiation is delivered. MRIdian delivers radiation to the tumor accurately while delivering less radiation to healthy tissue. MRIdian provides real-time imaging that defines the targeted tumor from the surrounding soft tissue and other critical organs during radiation treatment. MRIdian allows physicians to record the level of radiation exposure that the tumor has received and adapt the prescription between fractions as needed.

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