Comparing of Accuray Incorporated (ARAY) and Abbott Laboratories (NYSE:ABT)

We will be comparing the differences between Accuray Incorporated (NASDAQ:ARAY) and Abbott Laboratories (NYSE:ABT) as far as analyst recommendations, institutional ownership, profitability, risk, dividends, earnings and valuation are concerned. The two businesses are rivals in the Medical Appliances & Equipment industry.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Accuray Incorporated 411.76M 1.05 23.64M 0.39 10.13
Abbott Laboratories 30.58B 4.27 2.33B 1.32 53.73

Table 1 shows the top-line revenue, earnings per share (EPS) and valuation for Accuray Incorporated and Abbott Laboratories. Abbott Laboratories appears to has higher revenue and earnings than Accuray Incorporated. When company has lower P/E means it is more affordable than its counterpart currently. Accuray Incorporated’s currently lower P/E ratio makes it the more affordable of the two businesses.

Profitability

Table 2 provides us Accuray Incorporated and Abbott Laboratories’s return on assets, return on equity and net margins.

Net Margins Return on Equity Return on Assets
Accuray Incorporated -5.74% -50% -6.1%
Abbott Laboratories 7.62% 2.9% 1.2%

Risk & Volatility

A 1.5 beta indicates that Accuray Incorporated is 50.00% more volatile compared to Standard & Poor’s 500. Abbott Laboratories’s 1.43 beta is the reason why it is 43.00% more volatile than Standard & Poor’s 500.

Liquidity

The Current Ratio and Quick Ratio of Accuray Incorporated are 1.7 and 1 respectively. Its competitor Abbott Laboratories’s Current Ratio is 1.4 and its Quick Ratio is 1.1. Accuray Incorporated can pay off short and long-term obligations better than Abbott Laboratories.

Dividends

Abbott Laboratories also pays out annual dividends at $1.16 per share and at a 1.55% dividend yield. No dividend is paid out for Accuray Incorporated.

Analyst Ratings

The Recommendations and Ratings for Accuray Incorporated and Abbott Laboratories are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Accuray Incorporated 0 1 0 2.00
Abbott Laboratories 1 0 9 2.90

The average target price of Accuray Incorporated is $3.9, with potential downside of -20.57%. Competitively the average target price of Abbott Laboratories is $80, which is potential 7.56% upside. Based on the analysts view we can conclude, Abbott Laboratories is looking more favorable than Accuray Incorporated.

Institutional and Insider Ownership

Accuray Incorporated and Abbott Laboratories has shares held by institutional investors as follows: 85.1% and 75.3%. Accuray Incorporated’s share held by insiders are 3.6%. Insiders Comparatively, held 0.2% of Abbott Laboratories shares.

Performance

Here are 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)
Accuray Incorporated -3.17% -24.24% 0.51% -10.79% -22.91% -7.67%
Abbott Laboratories -4.23% -2.18% 6.57% 12.34% 29.68% 24.27%

For the past year Accuray Incorporated has -7.67% weaker performance while Abbott Laboratories has 24.27% stronger performance.

Summary

Abbott Laboratories beats on 16 of the 16 factors Accuray Incorporated.

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.

Abbott Laboratories manufactures and sells health care products worldwide. The company’s Established Pharmaceutical Products segment offers branded generic pharmaceuticals to treat pancreatic exocrine insufficiency; irritable bowel syndrome or biliary spasm; intrahepatic cholestasis or depressive symptoms; gynecological disorders; hormone replacement therapy; dyslipidemia; hypertension; hypothyroidism; Ménière's disease and vestibular vertigo; pain, fever, and inflammation; migraines; anti-infective clarithromycin; cardiovascular and metabolic products; and influenza vaccines, as well as to regulate physiological rhythm of the colon. Its Diagnostic Products segment provides immunoassay and clinical chemistry systems; assays used to screen and/or diagnosis cancer, cardiac, drugs of abuse, fertility, infectious diseases, and therapeutic drug monitoring; hematology systems and reagents; diagnostic systems and cartridges; instruments to automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detects and measures infectious agents; genomic-based tests; informatics and automation solutions; and a suite of informatics tools and professional services. The company’s Nutritional Products segment provides pediatric and adult nutritional products. Its Vascular Products segment offers coronary, endovascular, vessel closure, and structural heart devices to treat vascular disease. The company also provides blood and flash glucose monitoring systems, including test strips, sensors, data management decision software, and accessories for people with diabetes; and medical devices for the eye, such as cataract and LASIK surgery, contact lens care, and dry eye products. It serves retailers, wholesalers, hospitals, health care facilities, laboratories, physicians' offices, and government agencies. The company was founded in 1888 and is headquartered in North Chicago, Illinois.