Accuray (NASDAQ:ARAY) versus Utah Medical Products (NASDAQ:UTMD) Financial Survey

Utah Medical Products (NASDAQ:UTMD) and Accuray (NASDAQ:ARAY) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Volatility and Risk

Utah Medical Products has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Accuray has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

69.6% of Utah Medical Products shares are owned by institutional investors. Comparatively, 64.1% of Accuray shares are owned by institutional investors. 6.6% of Utah Medical Products shares are owned by insiders. Comparatively, 3.8% of Accuray shares are owned 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Utah Medical Products	$50.22 million	4.70	$16.64 million	$4.50	14.86
Accuray	$447.61 million	0.40	-$9.28 million	($0.22)	-8.14

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

Profitability

This table compares Utah Medical Products and Accuray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Utah Medical Products	33.40%	13.06%	12.30%
Accuray	-4.99%	-44.46%	-4.54%

Analyst Recommendations

This is a breakdown of current recommendations for Utah Medical Products and Accuray, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Utah Medical Products	0	0	0	0	N/A
Accuray	0	0	3	0	3.00

Accuray has a consensus price target of $8.25, suggesting a potential upside of 360.89%. Given Accuray’s higher probable upside, analysts plainly believe Accuray is more favorable than Utah Medical Products.

Summary

Utah Medical Products beats Accuray on 9 of the 13 factors compared between the two stocks.

About Utah Medical Products

Utah Medical Products, Inc. develops, manufactures, and distributes medical devices for the healthcare industry worldwide. It offers fetal monitoring accessories, vacuum-assisted delivery systems, and other labor and delivery tools; DISPOSA-HOOD infant respiratory hoods; and DELTRAN PLUS blood pressure monitoring systems. It also provides GESCO, an umbilical vessel catheters, including DIALY-NATE disposable peritoneal dialysis sets; PALA-NATE silicone oral protection devices; URI-CATH urinary drainage systems; NUTRI-CATH\NUTRI-LOK feeding device; PICC-NATE, a percutaneous intraepithelial central venous catheter; MYELO-NATE lumbar sampling kits; HEMO-NATE disposable filters; and catheterization procedure tray of instruments and supplies. In addition, the company offers LETZ system to excise cervical intraepithelial neoplasia and other lower genital tract lesions; loop, ball, and needle electrodes; FILTRESSE evacuators; other specialty electrodes and supplies, and gynecologic tools; Femcare trocars, cannulae, laparoscopic instruments, and accessories; and EPITOME and OptiMicro electrosurgical devices. Further, it provides Filshie Clip female surgical contraception devices; PATHFINDER PLUS, an endoscopic irrigation devices; suprapubic catheterization; LIBERTY, an urinary incontinence treatment and control systems; ENDOCURETTE, a curette for uterine endometrial tissue sampling; TVUS/HSG-Cath to assess abnormal or dysfunctional uterine bleeding and other abnormalities of uterus; and LUMIN, a tool to manipulate the uterus in laparoscopic procedures. Additionally, it offers DELTRAN, a disposable pressure transducer; high-pressure and piezo-resistive transducer assemblies; and pressure monitoring accessories, components, and other molded parts. It serves neonatal intensive care units, labor and delivery departments, women's health centers in hospitals, outpatient clinics, and physician's offices. The company was incorporated in 1978 and is headquartered in Midvale, Utah.

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, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, 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 System, 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.