Varex Imaging (NASDAQ:VREX) & Zynex (NASDAQ:ZYXI) Financial Contrast

Zynex (NASDAQ:ZYXI) and Varex Imaging (NASDAQ:VREX) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Zynex and Varex Imaging, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zynex	1	2	1	0	2.00
Varex Imaging	1	1	2	0	2.25

Zynex currently has a consensus price target of $4.90, indicating a potential upside of 3,820.00%. Varex Imaging has a consensus price target of $16.17, indicating a potential upside of 49.55%. Given Zynex’s higher possible upside, equities analysts plainly believe Zynex is more favorable than Varex Imaging.

Risk and Volatility

Zynex has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zynex	$108.20 million	0.04	$2.99 million	($2.43)	-0.05
Varex Imaging	$844.60 million	0.54	-$70.30 million	($1.64)	-6.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zynex	-68.35%	-804.30%	-36.67%
Varex Imaging	-7.92%	8.43%	3.66%

Institutional & Insider Ownership

29.7% of Zynex shares are owned by institutional investors. 49.3% of Zynex 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.

Summary

Varex Imaging beats Zynex on 8 of the 14 factors compared between the two stocks.

About Zynex

Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

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.