Head to Head Analysis: Embecta (EMBC) versus Its Peers

Embecta (NASDAQ:EMBC) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its competitors? We will compare Embecta to similar businesses based on the strength of its analyst recommendations, dividends, profitability, earnings, valuation, institutional ownership and risk.

Earnings and Valuation

This table compares Embecta and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Embecta	$1.08 billion	$95.40 million	4.28
Embecta Competitors	$1.88 billion	$139.14 million	12.99

Embecta’s competitors have higher revenue and earnings than Embecta. Embecta is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Embecta and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embecta	8.59%	-19.25%	10.82%
Embecta Competitors	-276.78%	-149.08%	-21.73%

Risk and Volatility

Embecta has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Embecta’s competitors have a beta of 2.57, meaning that their average stock price is 157% more volatile than the S&P 500.

Institutional and Insider Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 1.3% of Embecta shares are owned by insiders. Comparatively, 15.0% of shares of all “Healthcare Equipment & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Embecta pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Embecta pays out 2.7% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.1% and pay out 40.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for Embecta and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	1	4	0	0	1.80
Embecta Competitors	4285	10564	18341	830	2.46

Embecta currently has a consensus price target of $11.00, indicating a potential upside of 73.78%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.56%. Given Embecta’s higher probable upside, analysts plainly believe Embecta is more favorable than its competitors.

Summary

Embecta competitors beat Embecta on 9 of the 15 factors compared.

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.