Trimedyne (OTCMKTS:TMED) and Varian Medical Systems (NYSE:VAR) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Institutional and Insider Ownership
87.0% of Varian Medical Systems shares are held by institutional investors. 11.1% of Trimedyne shares are held by insiders. Comparatively, 0.8% of Varian Medical Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and target prices for Trimedyne and Varian Medical Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Trimedyne | 0 | 0 | 0 | 0 | N/A |
Varian Medical Systems | 3 | 5 | 0 | 0 | 1.63 |
Varian Medical Systems has a consensus price target of $159.3571, indicating a potential downside of 10.04%. Given Varian Medical Systems' higher probable upside, analysts plainly believe Varian Medical Systems is more favorable than Trimedyne.
Profitability
This table compares Trimedyne and Varian Medical Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Trimedyne | N/A | N/A | N/A |
Varian Medical Systems | 8.50% | 18.45% | 8.08% |
Earnings and Valuation
This table compares Trimedyne and Varian Medical Systems' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Trimedyne | $5.57 million | 0.09 | $230,000.00 | N/A | N/A |
Varian Medical Systems | $3.17 billion | 5.15 | $269.20 million | $3.91 | 45.40 |
Varian Medical Systems has higher revenue and earnings than Trimedyne.
Summary
Varian Medical Systems beats Trimedyne on 8 of the 9 factors compared between the two stocks.