Embecta (NASDAQ:EMBC – Get Free Report) and TransMedics Group (NASDAQ:TMDX – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Institutional and Insider Ownership
93.8% of Embecta shares are owned by institutional investors. Comparatively, 99.7% of TransMedics Group shares are owned by institutional investors. 1.3% of Embecta shares are owned by insiders. Comparatively, 6.9% of TransMedics Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Embecta and TransMedics Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 2 | 3 | 0 | 0 | 1.60 |
| TransMedics Group | 1 | 6 | 5 | 0 | 2.33 |
Profitability
This table compares Embecta and TransMedics Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Embecta | 8.59% | -19.25% | 10.82% |
| TransMedics Group | 22.69% | 15.88% | 5.95% |
Valuation and Earnings
This table compares Embecta and TransMedics Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Embecta | $1.08 billion | 0.29 | $95.40 million | $1.48 | 3.77 |
| TransMedics Group | $668.47 million | 4.50 | $190.29 million | $3.89 | 22.37 |
TransMedics Group has lower revenue, but higher earnings than Embecta. Embecta is trading at a lower price-to-earnings ratio than TransMedics Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Embecta has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, TransMedics Group has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.
Summary
TransMedics Group beats Embecta on 11 of the 14 factors compared between 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 TransMedics Group
TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity. The company was founded in 1998 and is headquartered in Andover, Massachusetts.
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