Critical Analysis: Embecta (NASDAQ:EMBC) versus PAVmed (NASDAQ:PAVM)

PAVmed (NASDAQ:PAVM) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PAVmed and Embecta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAVmed	0	0	1	1	3.50
Embecta	0	1	1	0	2.50

PAVmed currently has a consensus target price of $19.00, indicating a potential upside of 2,384.96%. Embecta has a consensus target price of $23.00, indicating a potential upside of 17.89%. Given PAVmed’s stronger consensus rating and higher possible upside, equities analysts clearly believe PAVmed is more favorable than Embecta.

Insider and Institutional Ownership

19.9% of PAVmed shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 14.7% of PAVmed shares are owned by insiders. Comparatively, 0.3% of Embecta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

PAVmed has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PAVmed	602.97%	N/A	-92.36%
Embecta	6.97%	-18.54%	11.43%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAVmed	$2.45 million	3.45	-$64.18 million	($4.35)	-0.18
Embecta	$1.12 billion	1.01	$78.30 million	$1.35	14.45

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

About PAVmed

PAVmed Inc. focuses on acquiring, developing, and commercializing novel products that target unmet needs in the United States. The company's lead products include CarpX, a patented, single-use, disposable, and minimally invasive surgical device for use in the treatment of carpal tunnel syndrome; EsoCheck Esophageal Cell Collection Device, which consists of diagnostic test that serves as a testing tool for preventing esophageal adenocarcinoma deaths, through early detection of esophageal precancer in at-risk gastroesophageal reflux disease, including chronic heartburn and acid reflux or simply reflux in patients; and EsoGuard, a bisulfite-converted next-generation sequencing DNA assay performed on surface esophageal cells collected with EsoCheck. Its product pipeline also comprises EsoCure EsoCure Esophageal Ablation Device for treating dysplastic BE; PortIO, an implantable intraosseous vascular access device; and Veris cancer care platform. The company was formerly known as PAXmed Inc. and changed its name to PAVmed Inc. in April 2015. PAVmed Inc. was incorporated in 2014 and is headquartered in New York, New York.

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.