Nano-X Imaging (NASDAQ:NNOX) versus Accuray (NASDAQ:ARAY) Head-To-Head Analysis

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

Risk and Volatility

Nano-X Imaging has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares Nano-X Imaging and Accuray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano-X Imaging	-716.44%	-70.96%	-62.26%
Accuray	-12.24%	-97.85%	-10.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nano-X Imaging and Accuray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano-X Imaging	1	2	2	1	2.50
Accuray	1	2	0	0	1.67

Nano-X Imaging presently has a consensus target price of $4.33, suggesting a potential upside of 393.55%. Accuray has a consensus target price of $2.00, suggesting a potential upside of 651.88%. Given Accuray’s higher probable upside, analysts plainly believe Accuray is more favorable than Nano-X Imaging.

Institutional and Insider Ownership

21.5% of Nano-X Imaging shares are held by institutional investors. Comparatively, 64.1% of Accuray shares are held by institutional investors. 2.4% of Accuray shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nano-X Imaging and Accuray”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano-X Imaging	$13.02 million	5.30	-$75.02 million	($1.58)	-0.56
Accuray	$401.95 million	0.08	-$49.19 million	($0.40)	-0.67

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

Summary

Accuray beats Nano-X Imaging on 9 of the 15 factors compared between the two stocks.

About Nano-X Imaging

Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source. The company provides teleradiology services and develops artificial intelligence applications to be used in real-world medical imaging applications. Its X-ray source is based on a digital micro-electro-mechanical systems semiconductor cathode. The company's solutions include Nanox Multi Source System comprising Nanox.ARC, a medical tomographic imaging system incorporating its digital X-ray source, and Nanox. CLOUD, a platform which employs a matching engine to match medical images to radiologists that provides image repository, connectivity to diagnostic assistive AI systems, billing, and reporting. It also offers Nanox.MARKETPLACE, which connects imaging facilities with radiologists and enables radiologists to provide, as well as customers to obtain remote interpretations of imaging data; artificial intelligence (AI)-based software imaging solutions to hospitals, health maintenance organizations, integrated delivery networks, pharmaceutical companies, and insurers that are designed to identify or predict undiagnosed or underdiagnosed medical conditions through the mining of data included in images of existing computed tomography scans for osteoporosis and cardiovascular disease; Teleradiology Services, which provide imaging interpretation services for radiology practices, hospitals, medical clinics, diagnostic imaging centers, urgent care facilities; and multi-specialty physician groups, contracts, and radiology readings. The company is headquartered in Petach Tikva, Israel.

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.