Embecta (NASDAQ:EMBC) & Penumbra (NYSE:PEN) Financial Review

Penumbra (NYSE:PEN) and Embecta (NASDAQ:EMBC) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Risk & Volatility

Penumbra has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Penumbra and Embecta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	1.17%	9.74%	7.35%
Embecta	5.25%	-19.22%	11.92%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.19 billion	8.89	$90.95 million	$0.34	810.91
Embecta	$1.11 billion	0.66	$78.30 million	$1.00	12.65

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Penumbra and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	3	13	1	2.88
Embecta	0	1	1	0	2.50

Penumbra currently has a consensus price target of $294.47, suggesting a potential upside of 6.80%. Embecta has a consensus price target of $23.00, suggesting a potential upside of 81.82%. Given Embecta’s higher probable upside, analysts clearly believe Embecta is more favorable than Penumbra.

Insider & Institutional Ownership

88.9% of Penumbra shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 5.0% of Penumbra shares are owned by insiders. Comparatively, 0.4% of Embecta shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Penumbra beats Embecta on 9 of the 15 factors compared between the two stocks.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

About Embecta

Embecta Corp., a medical device company, focuses on the provision of various solutions to enhance the health and wellbeing of people living with diabetes. Its products include pen needles, syringes, and safety injection devices, as well as digital applications to assist people with managing patient's diabetes. The company primarily sells its products to wholesalers and distributors in the United States and internationally. Embecta Corp. was founded in 1924 and is headquartered in Parsippany, New Jersey.