Head to Head Contrast: Varex Imaging (NASDAQ:VREX) and Senestech (NASDAQ:SNES)

Varex Imaging (NASDAQ:VREX) and Senestech (NASDAQ:SNES) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

5.2% of Senestech shares are owned by institutional investors. 4.6% of Varex Imaging shares are owned by company insiders. Comparatively, 5.3% of Senestech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Varex Imaging and Senestech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varex Imaging	$844.60 million	0.60	-$70.30 million	($1.64)	-7.32
Senestech	$2.22 million	3.82	-$6.38 million	($2.78)	-0.58

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Varex Imaging and Senestech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varex Imaging	1	1	2	1	2.60
Senestech	1	1	0	1	2.33

Varex Imaging presently has a consensus target price of $16.17, indicating a potential upside of 34.61%. Given Varex Imaging’s stronger consensus rating and higher possible upside, research analysts plainly believe Varex Imaging is more favorable than Senestech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Varex Imaging	-7.92%	8.43%	3.66%
Senestech	-287.39%	-78.74%	-58.47%

Risk and Volatility

Varex Imaging has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Senestech has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.

Summary

Varex Imaging beats Senestech on 9 of the 14 factors compared between the two stocks.

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.

About Senestech

SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.