Head to Head Contrast: Cannlabs (OTCMKTS:CANL) versus Embecta (NASDAQ:EMBC)

Cannlabs (OTCMKTS:CANL) and Embecta (NASDAQ:EMBC) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannlabs	N/A	N/A	N/A	N/A	N/A
Embecta	$1.12 billion	0.71	$78.30 million	$1.43	9.50

Embecta has higher revenue and earnings than Cannlabs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cannlabs	N/A	N/A	N/A
Embecta	7.58%	-23.40%	14.46%

Institutional & Insider Ownership

93.8% of Embecta shares are owned by institutional investors. 0.4% of Embecta shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Cannlabs has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Embecta has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cannlabs and Embecta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannlabs	0	0	0	0	0.00
Embecta	0	4	1	0	2.20

Embecta has a consensus target price of $19.00, indicating a potential upside of 39.81%. Given Embecta’s stronger consensus rating and higher possible upside, analysts plainly believe Embecta is more favorable than Cannlabs.

Summary

Embecta beats Cannlabs on 8 of the 10 factors compared between the two stocks.

About Cannlabs

CannLabs, Inc. provides cannabis testing laboratory services in the United States. Its testing services include potency testing, residual solvent analysis, microbiological testing, pesticide testing, heavy metals testing, nutrient analysis, terpenes analysis, shelf-life/stability studies, gene expression testing, and genotyping/phenotyping testing. The company also offers data/analytics and consulting, as well as education services. CannLabs, Inc. was incorporated in 2010 and is based 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.