Head-To-Head Analysis: Varex Imaging (NASDAQ:VREX) vs. Sonova (OTCMKTS:SONVY)

Sonova (OTCMKTS:SONVY) and Varex Imaging (NASDAQ:VREX) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Sonova and Varex Imaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonova	N/A	N/A	N/A
Varex Imaging	2.55%	9.19%	4.13%

Earnings & Valuation

This table compares Sonova and Varex Imaging”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonova	$4.50 billion	3.89	$536.96 million	N/A	N/A
Varex Imaging	$844.60 million	0.92	-$70.30 million	$0.52	35.56

Sonova has higher revenue and earnings than Varex Imaging.

Risk & Volatility

Sonova has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Sonova shares are owned by institutional investors. 0.0% of Sonova shares are owned by insiders. Comparatively, 4.6% of Varex Imaging shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sonova and Varex Imaging, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonova	1	3	2	1	2.43
Varex Imaging	0	7	0	0	2.00

Varex Imaging has a consensus price target of $16.88, suggesting a potential downside of 8.73%. Given Varex Imaging’s higher possible upside, analysts plainly believe Varex Imaging is more favorable than Sonova.

Summary

Sonova beats Varex Imaging on 8 of the 13 factors compared between the two stocks.

About Sonova

Sonova Holding AG manufactures and sells hearing care solutions for adults and children in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Hearing Instruments and Cochlear Implants segments. The Hearing Instruments segments engages in the design, development, manufacture, distribution, and service of hearing instruments and related products, as well as wireless headsets, speech-enhanced hearables, and audiophile headphones under the Phonak, Unitron, Hansaton, and Sennheiser brand names; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton Hearing brands. The Cochlear Implants segment is involved in the design, development, manufacture, distribution, and service of hearing implants and related products under the Advanced Bionics brand. The company sells its products through independent distributors; and provides hearing care services through a network of stores and clinics. 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.

About Varex Imaging

Varex Imaging Corporation designs, manufactures, and sells X-ray imaging components. The company operates through two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components, comprising X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, and heat exchangers. This segment's products are used in a range of applications, including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses. The Industrial segment designs, develops, manufactures, sells, and services Linatron X-ray linear accelerators, X-ray tubes, digital detectors, high voltage connectors, and coolers for use in security and inspection applications, such as baggage screening at airports, cargo screening at ports and borders, and nondestructive testing, irradiation, and inspection in various applications. The company sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. It has operations in North America, South America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation was incorporated in 2016 and is headquartered in Salt Lake City, Utah.