GBS (NYSE:GBS) & Penumbra (NYSE:PEN) Critical Analysis

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

Volatility and Risk

Penumbra has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, GBS has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

88.9% of Penumbra shares are owned by institutional investors. Comparatively, 2.8% of GBS shares are owned by institutional investors. 5.0% of Penumbra shares are owned by company insiders. Comparatively, 0.3% of GBS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Penumbra and GBS’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%
GBS	N/A	-85.64%	-54.42%

Analyst Ratings

This is a summary of recent ratings and price targets for Penumbra and GBS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	3	13	1	2.88
GBS	0	0	0	0	0.00

Penumbra presently has a consensus target price of $294.47, suggesting a potential upside of 3.72%. Given Penumbra’s stronger consensus rating and higher possible upside, equities analysts clearly believe Penumbra is more favorable than GBS.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.19 billion	9.15	$90.95 million	$0.34	835.03
GBS	$440,000.00	71.40	-$8.31 million	($0.56)	-3.77

Penumbra has higher revenue and earnings than GBS. GBS 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 GBS on 13 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 GBS

GBS Inc. operates as a biosensor diagnostic technology company in the Asia-Pacific and North America. It offers Saliva Glucose Biosensor, an organic thin-film transistor for diabetes management that measures glucose in saliva. The company also focuses on developing SARS-CoV-2 Biosensor, a biosensor test can be used as a complement to the (RNA) virus detection test; and a biosensor platform comprising of biochemistry, immunology, tumor markers, hormones, and nucleic acid diagnostic modalities. GBS Inc. has a research agreement with Johns Hopkins Bloomberg School of Public Health for the development of saliva-based diagnostic tests. The company was formerly known as Glucose Biosensor Systems (Greater China) Holdings, Inc. and changed its name to GBS Inc. in September 2019. The company was incorporated in 2016 and is headquartered in New York, New York. GBS Inc. is a subsidiary of Life Science Biosensor Diagnostics Pty Ltd.