Critical Analysis: Penumbra (NYSE:PEN) vs. enVVeno Medical (NASDAQ:NVNO)

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

Insider & Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 34.7% of enVVeno Medical shares are held by institutional investors. 5.0% of Penumbra shares are held by insiders. Comparatively, 15.0% of enVVeno Medical shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Penumbra and enVVeno Medical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	1	2	13	1	2.82
enVVeno Medical	1	1	0	0	1.50

Penumbra presently has a consensus price target of $340.40, suggesting a potential upside of 7.73%. Given Penumbra’s stronger consensus rating and higher possible upside, analysts plainly believe Penumbra is more favorable than enVVeno Medical.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penumbra	12.30%	11.35%	8.70%
enVVeno Medical	N/A	-61.45%	-56.88%

Volatility and Risk

Penumbra has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, enVVeno Medical has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Penumbra and enVVeno Medical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.19 billion	10.36	$14.01 million	$4.18	75.59
enVVeno Medical	N/A	N/A	-$21.82 million	($1.08)	-0.34

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

Summary

Penumbra beats enVVeno Medical on 12 of the 14 factors compared between the two stocks.

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.

About enVVeno Medical

enVVeno Medical Corporation (Nasdaq: NVNO) is an medical device company focused on the development of innovative bioprosthetic (tissue-based) devices to improve the standard of care in the treatment of venous disease. The company’s lead product, the VenoValve®️, is a first-in-class, surgical implant being developed for the treatment of severe deep venous Chronic Venous Insufficiency (CVI). Deep venous CVI occurs when valves inside of the deep veins of the leg become damaged, resulting in insufficient blood being returned to the heart. The malfunctioning vein valves cause blood to flow backwards (reflux) and pool in the lower leg, increasing the pressure within the veins of the leg (venous hypertension). In the most severe cases, CVI can lead to venous ulcers (open skin sores) that become chronic and difficult to heal. The VenoValve is implanted in the femoral vein and works as a replacement venous valve, designed to reduce reflux and venous hypertension, and to restore proper directional blood flow back to the heart. With severe deep venous CVI impacting an estimated 2.4 million people in the U.S., who have no effective treatment options, the VenoValve has received Breakthrough Device Designation from the U.S. Food and Drug Administration, and is currently being evaluated in the SAVVE U.S. clinical trial.