Head-To-Head Analysis: Varex Imaging (VREX) vs. Fanuc (FANUY)

Varex Imaging (NASDAQ: VREX) and Fanuc (OTCMKTS:FANUY) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Varex Imaging 7.24% 16.90% 6.58%
Fanuc N/A N/A N/A

Valuation & Earnings

This table compares Varex Imaging and Fanuc’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 $698.10 million 2.02 $51.60 million $1.80 20.73
Fanuc $4.99 billion 9.66 $1.19 billion $0.61 40.78

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

Institutional & Insider Ownership

94.3% of Varex Imaging shares are held by institutional investors. Comparatively, 0.7% of Fanuc shares are held by institutional investors. 1.6% of Varex Imaging shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Varex Imaging and Fanuc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varex Imaging 0 1 1 0 2.50
Fanuc 0 1 0 0 2.00

Varex Imaging currently has a consensus target price of $36.00, indicating a potential downside of 3.54%. Given Varex Imaging’s stronger consensus rating and higher probable upside, analysts plainly believe Varex Imaging is more favorable than Fanuc.

Volatility and Risk

Varex Imaging has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

Varex Imaging beats Fanuc on 10 of the 14 factors compared between the two stocks.

Varex Imaging Company Profile

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company operates in two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components comprising X-ray tubes, digital flat panel image detectors, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers, and buckys. This segment's products are used in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, and computer-aided detection. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high voltage connectors, and image-processing software for use in security and industrial inspection applications, such as airport security screening at ports and borders, as well as nondestructive examination in various applications. Varex Imaging Corporation sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, Latin America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation is headquartered in Salt Lake City, Utah.

Fanuc Company Profile

Fanuc Corporation provides factory automation products worldwide. The company offers CNC series, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire-cut electric discharge machines, and super nano machines. Fanuc Corporation was founded in 1972 and is headquartered in Minamitsuru-gun, Japan.

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