Contrasting SeaStar Medical (NASDAQ:ICU) & Embecta (NASDAQ:EMBC)

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

Valuation and Earnings

This table compares SeaStar Medical and Embecta”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SeaStar Medical	$1.23 million	12.20	-$12.15 million	($4.80)	-0.78
Embecta	$1.08 billion	0.18	$95.40 million	$1.90	1.73

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

Profitability

This table compares SeaStar Medical and Embecta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SeaStar Medical	-828.62%	-146.29%	-96.48%
Embecta	10.73%	-23.96%	14.12%

Analyst Ratings

This is a summary of current recommendations and price targets for SeaStar Medical and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SeaStar Medical	1	0	1	0	2.00
Embecta	2	3	0	0	1.60

SeaStar Medical currently has a consensus target price of $8.00, suggesting a potential upside of 113.33%. Embecta has a consensus target price of $11.00, suggesting a potential upside of 234.35%. Given Embecta’s higher possible upside, analysts clearly believe Embecta is more favorable than SeaStar Medical.

Institutional and Insider Ownership

1.7% of SeaStar Medical shares are held by institutional investors. Comparatively, 93.8% of Embecta shares are held by institutional investors. 0.7% of SeaStar Medical shares are held by company insiders. Comparatively, 1.3% of Embecta shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SeaStar Medical has a beta of -1.05, meaning that its stock price is 205% less volatile than the S&P 500. Comparatively, Embecta has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Embecta beats SeaStar Medical on 11 of the 14 factors compared between the two stocks.

About SeaStar Medical

SeaStar Medical Holding Corporation, a medical device company, develops a platform therapy to reduce the consequences of hyperinflammation on vital organs in the United States. The company offers inflammatory response to fend off infections and repair damaged tissue in the body. It is also developing products in various therapeutic areas, including pediatric and adult acute kidney injury on CRRT; cardiorenal syndrome in congestive heart failure; myocardial stunning in end stage renal disease; and hepatorenal syndrome. The company is headquartered in Denver, Colorado.

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.