Profound Medical (NASDAQ:PROF – Get Free Report) and Embecta (NASDAQ:EMBC – Get Free Report) 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, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Insider and Institutional Ownership
47.9% of Profound Medical shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 1.5% of Profound Medical shares are owned by company insiders. Comparatively, 0.3% of Embecta shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Profound Medical has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Profound Medical | 0 | 0 | 3 | 0 | 3.00 |
| Embecta | 1 | 1 | 0 | 0 | 1.50 |
Profound Medical presently has a consensus target price of $13.75, suggesting a potential upside of 76.28%. Embecta has a consensus target price of $12.00, suggesting a potential downside of 24.39%. Given Profound Medical’s stronger consensus rating and higher probable upside, equities analysts clearly believe Profound Medical is more favorable than Embecta.
Profitability
This table compares Profound Medical and Embecta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Profound Medical | -350.14% | -71.28% | -54.70% |
| Embecta | 6.23% | -19.09% | 12.27% |
Earnings and Valuation
This table compares Profound Medical and Embecta”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Profound Medical | $7.20 million | 26.52 | -$28.57 million | ($1.29) | -6.05 |
| Embecta | $1.12 billion | 0.81 | $70.40 million | $1.21 | 13.01 |
Embecta has higher revenue and earnings than Profound Medical. Profound Medical is trading at a lower price-to-earnings ratio than Embecta, indicating that it is currently the more affordable of the two stocks.
Summary
Embecta beats Profound Medical on 8 of the 13 factors compared between the two stocks.
About Profound Medical
Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.
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.
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