Presbia (OTCMKTS:LENSF) versus Penumbra (NYSE:PEN) Critical Analysis

Presbia (OTCMKTS:LENSF) and Penumbra (NYSE:PEN) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

Presbia has a beta of 5.91, meaning that its share price is 491% more volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Presbia and Penumbra’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presbia	N/A	N/A	N/A
Penumbra	1.26%	8.39%	6.36%

Institutional & Insider Ownership

88.9% of Penumbra shares are owned by institutional investors. 74.2% of Presbia shares are owned by insiders. Comparatively, 5.0% of Penumbra shares are owned by 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.

Earnings & Valuation

This table compares Presbia and Penumbra’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presbia	N/A	N/A	N/A	N/A	N/A
Penumbra	$1.06 billion	7.16	$90.95 million	$2.37	82.31

Penumbra has higher revenue and earnings than Presbia.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Presbia and Penumbra, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presbia	0	0	0	0	N/A
Penumbra	0	5	7	1	2.69

Penumbra has a consensus price target of $205.27, indicating a potential upside of 5.22%. Given Penumbra’s higher probable upside, analysts plainly believe Penumbra is more favorable than Presbia.

Summary

Penumbra beats Presbia on 8 of the 10 factors compared between the two stocks.

About Presbia

Presbia PLC, an ophthalmic device company, develops and markets optical lens implants for treating presbyopia. The company provides the refractive lens for patient surgeries, as well as accessories for procedures. It primarily operates in the United States, South Korea, Australia, Italy, the Netherlands, Ireland, Canada, and Germany. The company was founded in 2014 and is headquartered in Dublin, Ireland.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.