Comparing of Varian Medical Systems Inc. (VAR) and STAAR Surgical Company (NASDAQ:STAA)

Varian Medical Systems Inc. (NYSE:VAR) and STAAR Surgical Company (NASDAQ:STAA) have been rivals in the Medical Instruments & Supplies for quite some time. Below is a review of each business including various aspects such as dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Varian Medical Systems Inc. 2.98B 3.99 365.40M 3.88 30.80
STAAR Surgical Company 117.62M 13.30 3.73M 0.22 155.16

We can see in table 1 the earnings per share, top-line revenue and valuation of Varian Medical Systems Inc. and STAAR Surgical Company. STAAR Surgical Company seems to has lower revenue and earnings compared to Varian Medical Systems Inc. The company with a lower P/E ratio is presently more affordable of the two stocks. Varian Medical Systems Inc.’s presently lower P/E ratio means it is more affordable than STAAR Surgical Company.

Profitability

Table 2 shows us Varian Medical Systems Inc. and STAAR Surgical Company’s return on assets, return on equity and net margins.

Net Margins Return on Equity Return on Assets
Varian Medical Systems Inc. 12.26% 10.1% 4.6%
STAAR Surgical Company 3.17% 5.6% 3.8%

Risk and Volatility

Varian Medical Systems Inc.’s current beta is 0.64 and it happens to be 36.00% less volatile than Standard and Poor’s 500. Competitively, STAAR Surgical Company is 101.00% more volatile than Standard and Poor’s 500, because of the 2.01 beta.

Liquidity

The Current Ratio and a Quick Ratio of Varian Medical Systems Inc. are 1.6 and 1.3. Competitively, STAAR Surgical Company has 5.3 and 4.8 for Current and Quick Ratio. STAAR Surgical Company’s better ability to pay short and long-term obligations than Varian Medical Systems Inc.

Analyst Ratings

The next table highlights the given recommendations and ratings for Varian Medical Systems Inc. and STAAR Surgical Company.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Varian Medical Systems Inc. 1 0 3 2.75
STAAR Surgical Company 0 0 0 0.00

Varian Medical Systems Inc.’s downside potential is -3.69% at a $126.25 average target price.

Institutional & Insider Ownership

The shares of both Varian Medical Systems Inc. and STAAR Surgical Company are owned by institutional investors at 98.7% and 86.5% respectively. About 0.2% of Varian Medical Systems Inc.’s share are owned by insiders. Comparatively, insiders own roughly 0.1% of STAAR Surgical Company’s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Varian Medical Systems Inc. -3.15% -2.37% 9.42% -1.87% 6.73% 7.51%
STAAR Surgical Company -9.79% -31.42% -31.01% 17.84% 103.5% 121.23%

For the past year Varian Medical Systems Inc. has weaker performance than STAAR Surgical Company

Summary

On 10 of the 14 factors Varian Medical Systems Inc. beats STAAR Surgical Company.

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 Imaging Components. 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, 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, physiciansÂ’ offices, oncology practices, radiotherapy centers, and cancer care clinics. The Imaging Components segment offers X-ray imaging components for use in radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, computer aided diagnostics, and industrial applications. It also provides Linatron X-ray accelerators, imaging processing software, and image detection products for security and inspection purposes. This segment serves original equipment manufacturers, independent service companies, and end-users. In addition, the company offers products and systems for delivering proton therapy; and develops technologies in the areas of digital X-ray imaging, volumetric and functional imaging, and improved X-ray sources. 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.

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, and sells implantable lenses for the eye, and delivery systems to deliver the lenses into the eye. The company provides Visian implantable collamer lenses (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia; and Hyperopic ICL, which treats far-sightedness. It also offers minimally invasive intraocular lenses (IOLs), including foldable IOLs for use in minimally invasive cataract surgical procedures; aspheric IOLs that produce a clearer image than traditional spherical lenses; and nanoFLEX IOL, a single piece collamer aspheric optic, as well as preloaded injectors for use in cataract surgery. In addition, the company sells injector parts, and other related instruments and devices; and manufactures AquaFlow devices for the treatment of glaucoma. It markets its products to health care providers, including ophthalmic surgeons, vision centers, surgical centers, hospitals, government facilities, and distributors primarily under the STAAR, EVO Visian ICL, Evolution in Visual Freedom, Visian, Collamer, CentraFLOW, AquaPORT, nanoFLEX, nanoPOINT, Afinity, and AquaFLOW trademarks. The company sells products directly through its sales representatives in the United States, Japan, Spain, Germany, Canada, and the United Kingdom, as well as through independent distributors in approximately 60 countries. STAAR Surgical Company was founded in 1982 and is headquartered in Monrovia, California.

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