Comparing Penumbra (NYSE:PEN) and Embecta (NASDAQ:EMBC)

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

Volatility & Risk

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.11 billion	0.63	$78.30 million	$1.00	12.00
Penumbra	$1.19 billion	8.46	$90.95 million	$0.34	771.66

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 Recommendations

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

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

Embecta currently has a consensus price target of $23.00, suggesting a potential upside of 91.67%. Penumbra has a consensus price target of $294.47, suggesting a potential upside of 12.24%. Given Embecta’s higher probable upside, equities research analysts clearly believe Embecta is more favorable than Penumbra.

Institutional & Insider Ownership

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

Profitability

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

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

Summary

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

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.

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.