Critical Contrast: Teleflex (NYSE:TFX) versus Accuray (NASDAQ:ARAY)

Accuray (NASDAQ:ARAY) and Teleflex (NYSE:TFX) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Institutional and Insider Ownership

64.1% of Accuray shares are owned by institutional investors. Comparatively, 95.6% of Teleflex shares are owned by institutional investors. 4.2% of Accuray shares are owned by insiders. Comparatively, 1.4% of Teleflex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Accuray has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Teleflex has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Accuray and Teleflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accuray	-3.72%	-36.93%	-3.52%
Teleflex	7.85%	14.19%	8.53%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Accuray and Teleflex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	0	0	2	0	3.00
Teleflex	0	3	5	0	2.63

Accuray currently has a consensus price target of $9.00, suggesting a potential upside of 341.18%. Teleflex has a consensus price target of $259.00, suggesting a potential upside of 38.46%. Given Accuray’s stronger consensus rating and higher possible upside, research analysts clearly believe Accuray is more favorable than Teleflex.

Valuation and Earnings

This table compares Accuray and Teleflex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$446.55 million	0.46	-$15.55 million	($0.17)	-12.00
Teleflex	$2.97 billion	2.92	$356.33 million	$5.03	37.19

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

Summary

Teleflex beats Accuray on 10 of the 14 factors compared between the two stocks.

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, Asia, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, and China. It offers the CyberKnife platform, 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 platform, 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.

About Teleflex

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. The company provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. It also offers interventional products, which consists of various coronary catheters, structural heart support devices, and peripheral intervention and mechanical circulatory support platform that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded pumps and catheters, Guideline, Turnpike, and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. The company provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. It also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings; urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.