Varex Imaging (NASDAQ: VREX) and IMPINJ (NASDAQ:PI) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
This table compares Varex Imaging and IMPINJ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Varex Imaging and IMPINJ’s top-line revenue, earnings per share 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||20.61|
|IMPINJ||$125.30 million||3.77||-$17.32 million||($0.29)||-76.24|
Varex Imaging has higher revenue and earnings than IMPINJ. IMPINJ is trading at a lower price-to-earnings ratio than Varex Imaging, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.1% of Varex Imaging shares are held by institutional investors. Comparatively, 71.3% of IMPINJ shares are held by institutional investors. 1.6% of Varex Imaging shares are held by insiders. Comparatively, 15.2% of IMPINJ shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Varex Imaging has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, IMPINJ has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Varex Imaging and IMPINJ, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Varex Imaging currently has a consensus price target of $36.00, indicating a potential downside of 2.94%. IMPINJ has a consensus price target of $25.00, indicating a potential upside of 13.07%. Given IMPINJ’s higher probable upside, analysts plainly believe IMPINJ is more favorable than Varex Imaging.
Varex Imaging beats IMPINJ on 10 of the 14 factors compared between the two stocks.
About Varex Imaging
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.
Impinj, Inc. operates a platform that enables wireless connectivity to everyday items by delivering each item's unique identity, location, and authenticity to business and consumer applications. The company's platform includes endpoint integrated circuits (ICs) product, a miniature radios-on-a-chip, which attach-to and identify their host items; and connectivity layer that comprises readers, gateways, and reader ICs to wirelessly identify, locate, authenticate, and engage endpoints via RAIN, as well as provide power to and communicate bidirectionally with endpoint ICs. Its platform also consists of software layer that comprises ItemSense, an operating system for platform. In addition, the company's platform connects everyday items, such as apparel, medical supplies, automobile parts, drivers' licenses, food, and luggage to consumer and business applications, including inventory management, patient safety, asset tracking, and item authentication, as well as delivers real-time information to businesses about items they create, manage, transport, and sell. It primarily serves retail, healthcare, supply chain and logistics, airline, automotive, industrial and manufacturing, consumer experience, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Impinj, Inc. was founded in 2000 and is headquartered in Seattle, Washington.
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