Comparing Embecta (NASDAQ:EMBC) & OraSure Technologies (NASDAQ:OSUR)

OraSure Technologies (NASDAQ:OSUR) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Volatility and Risk

OraSure Technologies has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Embecta has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares OraSure Technologies and Embecta”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OraSure Technologies	$273.54 million	1.11	$53.65 million	$0.30	13.63
Embecta	$1.12 billion	0.70	$70.40 million	$1.21	11.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OraSure Technologies	9.88%	9.15%	8.24%
Embecta	6.23%	-19.09%	12.27%

Insider and Institutional Ownership

93.5% of OraSure Technologies shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 3.4% of OraSure Technologies shares are owned by company insiders. Comparatively, 0.3% of Embecta shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for OraSure Technologies and Embecta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OraSure Technologies	0	2	1	0	2.33
Embecta	1	1	0	0	1.50

OraSure Technologies presently has a consensus price target of $6.67, suggesting a potential upside of 63.00%. Embecta has a consensus price target of $12.00, suggesting a potential downside of 12.15%. Given OraSure Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe OraSure Technologies is more favorable than Embecta.

Summary

OraSure Technologies beats Embecta on 8 of the 14 factors compared between the two stocks.

About OraSure Technologies

OraSure Technologies, Inc., together with its subsidiaries, provides point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services in the United States, Europe, and internationally. The company’s products include InteliSwab COVID-19 rapid test, InteliSwab COVID-19 rapid test pro, InteliSwab COVID-19 rapid test rx, OraQuick Rapid HIV test, OraQuick In-Home HIV test, OraQuick HIV self-test, OraQuick HCV rapid antibody test, OraQuick Ebola rapid antigen test, OraSure oral fluid collection device used in conjunction with screening and confirmatory tests for HIV-1 antibodies; Intercept drug testing systems; immunoassay tests and reagents; and Q.E.D. saliva alcohol test. It also offers genomic products under the Oragene and ORAcollect brands for collecting genetic material from human saliva; Colli-Pee collection devices for the volumetric collection of void urine samples; and microbiome laboratory testing and analytical services. In addition, the company provides microbiome products, such as OMNIgene GUT for self-collecting microbial DNA from feces or stool samples for gut microbiome profiling; OMNIgene GUT DNA and RNA collection devices; and OMNIgene GUT Dx collection device for collection of human fecal samples and the stabilization of DNA from the bacterial community. Additionally, it provides other diagnostic products, such as immunoassays and other in vitro diagnostic tests. The company markets its products to clinical laboratories, hospitals, clinics, community-based organizations and other public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, disease risk management, diagnostics, pharmaceutical, biotech, nutrition, companion animal, and environmental markets. OraSure Technologies, Inc. was incorporated in 2000 and is based in Bethlehem, Pennsylvania.

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.