SI-BONE (NASDAQ:SIBN) vs. Accuray (NASDAQ:ARAY) Critical Contrast

SI-BONE (NASDAQ:SIBN) and Accuray (NASDAQ:ARAY) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for SI-BONE and Accuray, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SI-BONE	0	0	6	0	3.00
Accuray	0	0	3	0	3.00

SI-BONE presently has a consensus target price of $23.00, indicating a potential upside of 46.68%. Accuray has a consensus target price of $8.25, indicating a potential upside of 334.21%. Given Accuray’s higher possible upside, analysts plainly believe Accuray is more favorable than SI-BONE.

Volatility and Risk

SI-BONE has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares SI-BONE and Accuray”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SI-BONE	$138.89 million	4.71	-$43.34 million	($1.09)	-14.39
Accuray	$446.55 million	0.42	-$15.55 million	($0.22)	-8.64

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

Profitability

This table compares SI-BONE and Accuray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SI-BONE	-27.10%	-24.27%	-17.98%
Accuray	-3.48%	-33.39%	-3.29%

Insider & Institutional Ownership

98.1% of SI-BONE shares are held by institutional investors. Comparatively, 64.1% of Accuray shares are held by institutional investors. 5.4% of SI-BONE shares are held by company insiders. Comparatively, 3.8% of Accuray shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Accuray beats SI-BONE on 8 of the 13 factors compared between the two stocks.

About SI-BONE

SI-BONE, Inc., a medical device company, that operate to solve musculoskeletal disorders of the sacropelvic anatomy in the United States and internationally. It offers proprietary minimally invasive surgical implant system to address sacroiliac joint dysfunction and fusion, adult deformity and degeneration, and pelvic trauma; and implantable bone products. The company also provides iFuse-3D, a titanium implant that combines the triangular cross-section of the iFuse implant with the proprietary 3D-printed porous surface and fenestrated design; iFuse-TORQ, a set of 3D-printed threaded implants designed to treat pelvic trauma; and iFuse Bedrock Granite implant provides sacroiliac fusion and sacropelvic fixation as a foundational element for segmental spinal fusion. It markets its products primarily with a direct sales force, as well as through agents and resellers. SI-BONE, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.

About Accuray

Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy System, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.