LENSAR (NASDAQ:LNSR) vs. Accuray (NASDAQ:ARAY) Financial Analysis

Accuray (NASDAQ:ARAY) and LENSAR (NASDAQ:LNSR) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accuray	-4.28%	-34.06%	-4.34%
LENSAR	-87.12%	-737.30%	-73.64%

Insider and Institutional Ownership

64.1% of Accuray shares are held by institutional investors. Comparatively, 40.2% of LENSAR shares are held by institutional investors. 4.4% of Accuray shares are held by insiders. Comparatively, 66.0% of LENSAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Accuray has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$458.51 million	0.27	-$1.59 million	($0.16)	-6.75
LENSAR	$59.14 million	2.33	-$31.40 million	($4.39)	-2.63

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

Analyst Ratings

This is a summary of current recommendations for Accuray and LENSAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	1	0	1	0	2.00
LENSAR	1	2	0	0	1.67

Accuray presently has a consensus target price of $4.00, indicating a potential upside of 270.37%. LENSAR has a consensus target price of $15.00, indicating a potential upside of 29.87%. Given Accuray’s stronger consensus rating and higher possible upside, research analysts clearly believe Accuray is more favorable than LENSAR.

Summary

Accuray beats LENSAR on 11 of the 14 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 LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.