Head-To-Head Analysis: Embecta (EMBC) vs. Its Peers

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	1	4	0	0	1.80
Embecta Competitors	4262	10489	18226	825	2.46

Embecta presently has a consensus target price of $11.00, suggesting a potential upside of 76.14%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 23.27%. Given Embecta’s higher possible upside, analysts clearly believe Embecta is more favorable than its competitors.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Embecta	$1.02 billion	$95.40 million	4.22
Embecta Competitors	$1.90 billion	$137.77 million	10.84

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	-278.38%	-150.31%	-21.96%

Risk and Volatility

Embecta has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Embecta’s competitors have a beta of 2.55, meaning that their average share price is 155% more volatile than the S&P 500.

Institutional & Insider Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 1.3% of Embecta shares are owned by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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 2.2% and pay out 53.9% of their earnings in the form of a dividend.

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.