Fanuc (FANUY) & Varex Imaging (VREX) Critical Contrast

Fanuc (OTCMKTS: FANUY) and Varex Imaging (NASDAQ:VREX) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Volatility and Risk

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Fanuc has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.



Institutional and Insider Ownership

0.7% of Fanuc shares are owned by institutional investors. Comparatively, 94.5% of Varex Imaging shares are owned by institutional investors. 1.6% of Varex Imaging shares are owned 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 Ratings

This is a breakdown of recent recommendations and price targets for Fanuc and Varex Imaging, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fanuc 0 1 0 0 2.00
Varex Imaging 0 1 1 0 2.50

Varex Imaging has a consensus target price of $36.00, indicating a potential downside of 4.99%. Given Varex Imaging’s stronger consensus rating and higher probable upside, analysts clearly believe Varex Imaging is more favorable than Fanuc.

Profitability

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

Net Margins Return on Equity Return on Assets
Fanuc N/A N/A N/A
Varex Imaging 7.24% 16.90% 6.58%

Valuation and Earnings

This table compares Fanuc and Varex Imaging’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fanuc $4.99 billion 9.59 $1.19 billion $0.61 40.50
Varex Imaging $698.10 million 2.05 $51.60 million $1.80 21.05

Fanuc has higher revenue and earnings than Varex Imaging. Varex Imaging is trading at a lower price-to-earnings ratio than Fanuc, indicating that it is currently the more affordable of the two stocks.

Summary

Varex Imaging beats Fanuc on 10 of the 14 factors compared between the two stocks.

Fanuc Company Profile

Fanuc Corporation provides factory automation products worldwide. The company offers CNC series, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire-cut electric discharge machines, and super nano machines. Fanuc Corporation was founded in 1972 and is headquartered in Minamitsuru-gun, Japan.

Varex Imaging Company Profile

Varex Imaging Corporation designs and manufactures X-ray imaging components. The company operates in two segments, Medical and Industrial. The Medical segment designs, manufactures, sells, and services X-ray imaging components comprising X-ray tubes, digital flat panel image detectors, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers, and buckys. This segment's products are used in a range of applications, including radiographic and fluoroscopic imaging, mammography, computed tomography, radiation therapy, and computer-aided detection. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors, high voltage connectors, and image-processing software for use in security and industrial inspection applications, such as airport security screening at ports and borders, as well as nondestructive examination in various applications. Varex Imaging Corporation sells its products through imaging system original equipment manufacturers, independent service companies, and distributors, as well as directly to end-users. The company has operations in North America, Latin America, Europe, Russia, the Middle East, India, Africa, Asia, and Australia. Varex Imaging Corporation is headquartered in Salt Lake City, Utah.

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