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

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

Analyst Recommendations

This is a summary of current ratings for Embecta and PAVmed, as provided by MarketBeat.com.

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

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

Institutional & Insider Ownership

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

Risk & Volatility

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

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.12 billion	1.00	$78.30 million	$1.35	14.45
PAVmed	$2.45 million	3.45	-$64.18 million	($4.35)	-0.18

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 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.

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.