Lonza Group (OTCMKTS:LZAGY) vs. Varex Imaging (NASDAQ:VREX) Head-To-Head Comparison

Lonza Group (OTCMKTS:LZAGY) and Varex Imaging (NASDAQ:VREX) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Volatility & Risk

Lonza Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Varex Imaging has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lonza Group and Varex Imaging”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lonza Group	$7.88 billion	5.92	$1.15 billion	N/A	N/A
Varex Imaging	$844.60 million	0.60	-$70.30 million	($1.64)	-7.42

Lonza Group has higher revenue and earnings than Varex Imaging.

Institutional and Insider Ownership

0.0% of Lonza Group shares are owned by institutional investors. 0.1% of Lonza Group shares are owned by company insiders. Comparatively, 4.6% of Varex Imaging shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lonza Group	N/A	N/A	N/A
Varex Imaging	-7.92%	8.43%	3.66%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lonza Group and Varex Imaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lonza Group	0	1	1	0	2.50
Varex Imaging	1	1	2	1	2.60

Varex Imaging has a consensus target price of $16.17, indicating a potential upside of 32.94%. Given Varex Imaging’s stronger consensus rating and higher probable upside, analysts clearly believe Varex Imaging is more favorable than Lonza Group.

Summary

Varex Imaging beats Lonza Group on 7 of the 13 factors compared between the two stocks.

About Lonza Group

Lonza Group AG, together with its subsidiaries, supplies various products and services for pharmaceutical, biotech, and nutrition markets in Europe, North and Central America, Latin America, Asia, Australia, New Zealand, and internationally. It operates through Biologics, Small Molecules, Cell & Gene, and Capsules & Health Ingredients segments. The Biologics segment engages in the contract development and manufacturing of biopharmaceuticals for clinical and commercial manufacturing needs throughout the product lifecycle, including drug substance and drug product manufacturing. The Small Molecules segment operates as an integrated development and manufacturing service provider for small molecule drug substances and their intermediates. This segment also supports customers across various aspects of design, development, and manufacturing, including particle engineering and drug product packaging. The Cell & Gene segment develops technologies and platforms that industrialize the manufacturing processes and production of cell and gene therapies; offers contract development and manufacturing services, and regulatory support for a range of allogeneic and autologous cell therapies, and exosome-based therapies, as well as viral vector gene therapies. This segment also provides Cocoon platform, a closed automated system for patient-scale cell therapy manufacturing; and specialty raw materials and enabling technology solutions in cell and gene therapy, injectable drugs, vaccines, and bio-manufacturing markets. The Capsules & Health Ingredients segment offers capsules, dosage form solutions, and health ingredients for pharmaceutical and nutraceutical customers. Lonza Group AG was incorporated in 1897 and is headquartered in Basel, Switzerland.

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.