Comparing Accuray (NASDAQ:ARAY) and Luminex (NASDAQ:LMNX)

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

Insider and Institutional Ownership

77.1% of Accuray shares are held by institutional investors. Comparatively, 80.4% of Luminex shares are held by institutional investors. 3.3% of Accuray shares are held by insiders. Comparatively, 8.7% of Luminex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Accuray -4.02% -35.92% -3.91%
Luminex -2.93% -2.38% -2.06%

Volatility and Risk

Accuray has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Luminex has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Accuray and Luminex, as reported by MarketBeat.

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

Accuray currently has a consensus price target of $4.00, indicating a potential upside of 44.93%. Luminex has a consensus price target of $26.50, indicating a potential upside of 29.21%. Given Accuray’s higher probable upside, research analysts plainly believe Accuray is more favorable than Luminex.

Dividends

Luminex pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. Accuray does not pay a dividend. Luminex pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Accuray and Luminex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accuray $418.79 million 0.59 -$16.43 million ($0.15) -18.40
Luminex $315.82 million 2.93 $18.51 million $0.48 42.73

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

Summary

Luminex beats Accuray on 11 of the 15 factors compared between the two stocks.

Accuray Company Profile

Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. The company offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body. The CyberKnife System automatically tracks, detects, and corrects for tumor and patient movement in real-time during the procedure, as well as enables the delivery of precise, high dose radiation while patients breathe normally. It also offers the TomoTherapy System, which consists of an integrated and versatile radiation therapy system used for the treatment of a range of cancer types. The company markets its products in the United States directly, as well as through a sales agent and group purchasing organizations; and directly and through distributors and sales agents in Europe, Japan and other countries of Asia, South America, and internationally to hospitals and stand-alone treatment facilities. Accuray Incorporated was incorporated in 1990 and is headquartered in Sunnyvale, California.

Luminex Company Profile

Luminex Corporation develops, manufactures, and sells proprietary biological testing technologies and products for the diagnostics, pharmaceutical, and research industries worldwide. Its products include Luminex 100/200 that integrates fluidics, optics, and digital signal processing; FLEXMAP 3D system for use as a general laboratory instrument; MAGPIX system, a multiplexing analyzer for qualitative and quantitative analysis of proteins and nucleic acids; ARIES system, a sample to answer real-time PCR platform; ARIES M1 system, a single-module version of the ARIES System; and VERIGENE system, a semi-automated, multiplex, molecular analysis system for the clinical diagnostics market. The company also provides MicroPlex, MagPlex, xTAG, SeroMAP, and calibration and control microspheres; xPONENT, a software suite to simplify laboratory workflow and enhance productivity; SYNCT data management software solutions; TDAS, an analysis program designed for development and optimization of nucleic acid assays; IDEAS, an image analysis software; and xTAG assays and products to identify the causative agent for respiratory and gastrointestinal infections, as well as IVD kits for cystic fibrosis genotyping and pharmacogenetic assays used to profile genetic mutations related to drug metabolism. In addition, it offers MultiCode assays and products comprising HSV 1&2 assays, and other products to detect infectious agents in clinical samples; ARIES cassettes that are self-contained assay consumables, such as ARIES HSV 1&2 assays, ARIES FLU A/B and RSV assays, ARIES group A strep assays, ARIES bordetella assays, ARIES GBS assay, and ARIES C. difficile assays; and VERIGENE test cartridges, as well as operates as an original equipment manufacturer of custom reagents and instrumentation. The company serves pharmaceutical companies, clinical laboratories, and research and medical institutions. Luminex Corporation was founded in 1995 and is based in Austin, Texas.

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