Analyzing Accuray (NASDAQ:ARAY) & Inogen (NASDAQ:INGN)

Accuray (NASDAQ:ARAY) and Inogen (NASDAQ:INGN) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Valuation and Earnings

This table compares Accuray and Inogen”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$401.95 million	0.04	-$49.19 million	($0.40)	-0.33
Inogen	$354.30 million	0.54	-$22.75 million	($0.90)	-8.06

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

Risk & Volatility

Accuray has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Inogen has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Accuray and Inogen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	1	1	0	0	1.50
Inogen	1	0	0	1	2.50

Insider & Institutional Ownership

64.1% of Accuray shares are held by institutional investors. Comparatively, 89.9% of Inogen shares are held by institutional investors. 3.5% of Accuray shares are held by company insiders. Comparatively, 2.5% of Inogen shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accuray	-12.24%	-97.85%	-10.82%
Inogen	-6.94%	-13.17%	-8.36%

Summary

Inogen beats Accuray on 9 of the 13 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 Inogen

Inogen, Inc., a medical technology company, develops, manufactures, and markets portable oxygen concentrators to patients, physicians and other clinicians, and third-party payors in the United States and internationally. Its oxygen concentrators are used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. The company offers Inogen One, a portable device that concentrate the air around the patient to provide a source of supplemental oxygen; Inogen At Home stationary oxygen concentrators; Simeox airway clearance; batteries; and related accessories. It also rents its products directly to patients. Inogen, Inc. was incorporated in 2001 and is headquartered in Goleta, California.