Analyzing Penumbra (NYSE:PEN) and Spectral AI (NASDAQ:MDAI)

Spectral AI (NASDAQ:MDAI) and Penumbra (NYSE:PEN) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

Spectral AI has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

67.1% of Spectral AI shares are held by institutional investors. Comparatively, 88.9% of Penumbra shares are held by institutional investors. 13.7% of Spectral AI shares are held by insiders. Comparatively, 2.9% of Penumbra shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectral AI	-69.27%	N/A	-78.56%
Penumbra	10.06%	10.39%	8.09%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Spectral AI and Penumbra, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectral AI	1	0	1	1	2.67
Penumbra	0	14	3	0	2.18

Spectral AI currently has a consensus target price of $4.00, indicating a potential upside of 161.44%. Penumbra has a consensus target price of $367.07, indicating a potential upside of 14.16%. Given Spectral AI’s stronger consensus rating and higher possible upside, research analysts clearly believe Spectral AI is more favorable than Penumbra.

Earnings & Valuation

This table compares Spectral AI and Penumbra”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectral AI	$19.65 million	2.51	-$7.57 million	($0.35)	-4.37
Penumbra	$1.40 billion	9.03	$177.69 million	$3.97	80.99

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

Summary

Penumbra beats Spectral AI on 9 of the 14 factors compared between the two stocks.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.

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.