Varian Medical Systems (NYSE:VAR) and SONOVA Hldg AG/ADR (OTCMKTS:SONVY) are both large-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
This table compares Varian Medical Systems and SONOVA Hldg AG/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Varian Medical Systems||4.07%||27.51%||12.41%|
|SONOVA Hldg AG/ADR||N/A||N/A||N/A|
This is a breakdown of current recommendations and price targets for Varian Medical Systems and SONOVA Hldg AG/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Varian Medical Systems||3||2||2||0||1.86|
|SONOVA Hldg AG/ADR||0||0||0||0||N/A|
Varian Medical Systems currently has a consensus price target of $113.33, suggesting a potential upside of 7.64%. Given Varian Medical Systems’ higher possible upside, equities analysts plainly believe Varian Medical Systems is more favorable than SONOVA Hldg AG/ADR.
Valuation and Earnings
This table compares Varian Medical Systems and SONOVA Hldg AG/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Varian Medical Systems||$2.67 billion||3.61||$249.60 million||$3.60||29.25|
|SONOVA Hldg AG/ADR||$2.43 billion||4.41||$354.51 million||N/A||N/A|
SONOVA Hldg AG/ADR has lower revenue, but higher earnings than Varian Medical Systems.
Insider & Institutional Ownership
92.4% of Varian Medical Systems shares are held by institutional investors. Comparatively, 0.2% of SONOVA Hldg AG/ADR shares are held by institutional investors. 0.8% of Varian Medical Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Varian Medical Systems has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, SONOVA Hldg AG/ADR has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.
SONOVA Hldg AG/ADR pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. Varian Medical Systems does not pay a dividend.
Varian Medical Systems beats SONOVA Hldg AG/ADR on 9 of the 12 factors compared between the two stocks.
Varian Medical Systems Company Profile
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 Varian Particle Therapy. 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 and 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, physicians' offices, oncology practices, radiotherapy centers, and cancer care clinics. The Varian Particle Therapy segment develops, designs, manufactures, sells, and services products and systems for delivering proton therapy for the treatment of cancer. Varian Medical Systems, Inc. has a strategic partnership with Siemens AG to co-develop new imaging and treatment solutions. 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.
SONOVA Hldg AG/ADR Company Profile
Sonova Holding AG designs, develops, manufactures, and distributes hearing systems for adults and children with hearing impairment. It offers hearing instruments, cochlear implants, wireless communication products, and rechargeable hearing aids, as well as professional audiological services. The company provides hearing instruments under the Phonak, Unitron, and Hansaton brand names; cochlear implants under the Advanced Bionics brand name; and professional audiological services under the Connect Hearing brand name. Sonova Holding offers its products through a sales and distribution network, which comprise approximately 50 Sonova-owned wholesale companies and 100 independent distributors; and AudioNova retail network of approximately 3,300 locations in 12 markets. It operates in the Americas, Europe, the Middle East, Africa, and the Asia/Pacific. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.
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