Financial Survey: Accuray (NASDAQ:ARAY) and Beyond Air (NASDAQ:XAIR)

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

Earnings and Valuation

This table compares Accuray and Beyond Air”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Accuray	$446.55 million	0.56	-$15.55 million	($0.05)	-48.60
Beyond Air	$1.16 million	27.23	-$60.24 million	($1.41)	-0.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accuray	-0.96%	-9.75%	-0.93%
Beyond Air	-2,369.17%	-227.29%	-106.51%

Risk and Volatility

Accuray has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Beyond Air has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Insider and Institutional Ownership

64.1% of Accuray shares are held by institutional investors. Comparatively, 31.5% of Beyond Air shares are held by institutional investors. 4.2% of Accuray shares are held by company insiders. Comparatively, 20.1% of Beyond Air shares are held by company 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.

Analyst Ratings

This is a breakdown of current ratings for Accuray and Beyond Air, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accuray	0	0	2	0	3.00
Beyond Air	0	1	3	1	3.00

Accuray presently has a consensus price target of $9.00, indicating a potential upside of 270.37%. Beyond Air has a consensus price target of $3.67, indicating a potential upside of 782.68%. Given Beyond Air’s higher possible upside, analysts clearly believe Beyond Air is more favorable than Accuray.

Summary

Accuray beats Beyond Air on 8 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 Beyond Air

Beyond Air, Inc. operates as a commercial-stage medical device and biopharmaceutical company in the United States. The company engages in the development of LungFit platform, a nitric oxide generator and delivery system. It offers LungFit PH for the treatment of persistent pulmonary hypertension of the newborn. The company is also developing LungFit PRO for the treatment of viral lung infections, such as community-acquired viral pneumonia, including COVID-19, as well as bronchiolitis in hospitalized patients; and LungFit GO for the treatment of nontuberculous mycobacteria. The company was formerly known as AIT Therapeutics, Inc. and changed its name to Beyond Air, Inc. in June 2019. Beyond Air, Inc. is based in Garden City, New York.