Accuray (NASDAQ:ARAY) & Sight Sciences (NASDAQ:SGHT) Head-To-Head Contrast

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sight Sciences and Accuray, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sight Sciences	1	5	2	0	2.13
Accuray	0	0	3	0	3.00

Sight Sciences presently has a consensus price target of $6.42, suggesting a potential upside of 0.26%. Accuray has a consensus price target of $8.25, suggesting a potential upside of 306.40%. Given Accuray’s stronger consensus rating and higher possible upside, analysts clearly believe Accuray is more favorable than Sight Sciences.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sight Sciences	-65.90%	-45.68%	-32.27%
Accuray	-3.48%	-33.39%	-3.29%

Volatility and Risk

Sight Sciences has a beta of 2.73, indicating that its share price is 173% more volatile than the S&P 500. Comparatively, Accuray has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sight Sciences and Accuray’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sight Sciences	$81.06 million	3.97	-$55.55 million	($1.12)	-5.71
Accuray	$446.55 million	0.45	-$15.55 million	($0.22)	-9.23

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

Insider and Institutional Ownership

55.5% of Sight Sciences shares are owned by institutional investors. Comparatively, 64.1% of Accuray shares are owned by institutional investors. 28.9% of Sight Sciences shares are owned by insiders. Comparatively, 3.8% of Accuray shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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

About Sight Sciences

Sight Sciences, Inc., an ophthalmic medical device company, engages in the development and commercialization of surgical and nonsurgical technologies for the treatment of eye diseases. It operates through two segments, Surgical Glaucoma and Dry Eye. The company's products include OMNI Surgical System, an implant-free glaucoma surgery technology indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and SION Surgical Instrument, a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. It also offers TearCare System, a wearable eyelid technology for adult patients with evaporative dry eye disease due to meibomian gland dysfunction, as well as related components. It offers its products through sales representatives and distributors to hospitals, medical centers, and eyecare professionals in the United States. Sight Sciences, Inc. was incorporated in 2010 and is headquartered in Menlo Park, 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.