Varian Medical Systems (NASDAQ: RSLS) and Reshape Lifesciences (NASDAQ:RSLS) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Valuation and Earnings
This table compares Varian Medical Systems and Reshape Lifesciences’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Varian Medical Systems||$2.67 billion||3.82||$249.60 million||$3.60||30.89|
|Reshape Lifesciences||$1.29 million||0.33||-$33.81 million||($47.68)||0.00|
Varian Medical Systems has higher revenue and earnings than Reshape Lifesciences. Reshape Lifesciences is trading at a lower price-to-earnings ratio than Varian Medical Systems, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Varian Medical Systems has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Reshape Lifesciences has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.
Insider & Institutional Ownership
93.7% of Varian Medical Systems shares are owned by institutional investors. 0.8% of Varian Medical Systems shares are owned by insiders. Comparatively, 9.2% of Reshape Lifesciences shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Varian Medical Systems and Reshape Lifesciences’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||4.07%||27.51%||12.41%|
This is a summary of current recommendations and price targets for Varian Medical Systems and Reshape Lifesciences, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||3||2||0||1.88|
Varian Medical Systems currently has a consensus price target of $111.29, indicating a potential upside of 0.07%. Given Varian Medical Systems’ higher possible upside, research analysts clearly believe Varian Medical Systems is more favorable than Reshape Lifesciences.
Varian Medical Systems beats Reshape Lifesciences on 11 of the 14 factors compared between the two stocks.
Varian Medical Systems Company Profile
Varian Medical Systems, Inc. designs, manufactures, sells, and services medical devices and software products for treating cancer and other medical conditions worldwide. It operates through two segments, Oncology Systems and Varian Particle Therapy. The Oncology Systems segment provides hardware and software products for treating cancer with radiotherapy, fixed field intensity-modulated radiation therapy, image-guided radiation therapy, volumetric modulated arc therapy, stereotactic radiosurgery, stereotactic body radiotherapy, and brachytherapy. Its products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment, and accessories; and information management, treatment planning, image processing, clinical knowledge exchange, patient care management, decision-making support, and practice management software. This segment serves university research and community hospitals, private and governmental institutions, healthcare agencies, physicians' offices, oncology practices, radiotherapy centers, and cancer care clinics. The Varian Particle Therapy segment develops, designs, manufactures, sells, and services products and systems for delivering proton therapy for the treatment of cancer. Varian Medical Systems, Inc. has a strategic partnership with Siemens AG to co-develop new imaging and treatment solutions. The company was formerly known as Varian Associates, Inc. and changed its name to Varian Medical Systems, Inc. in April 1999. Varian Medical Systems, Inc. was founded in 1948 and is headquartered in Palo Alto, California.
Reshape Lifesciences Company Profile
ReShape Lifesciences Inc., a medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases, and other gastrointestinal disorders. Its proprietary neuroblocking technology, vBloc Therapy is designed to intermittently block the vagus nerve using electrical impulses. The company's product portfolio includes ReShape vBloc, a therapy that enables patients to feel full and eat less by intermittently blocking hunger signals on the vagus nerve; and ReShape Balloon system that uses balloon technology designed to take up room in the stomach to enable people lose weight. Its product portfolio also comprises ReShape Vest system, an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach to enable weight loss in obese and morbidly obese patients without permanently changing patient anatomy. The company was formerly known as EnteroMedics Inc. and changed its name to ReShape Lifesciences Inc. in October 2017. ReShape Lifesciences Inc. was founded in 2002 and is headquartered in San Clemente, California.
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