Penumbra (PEN) versus Its Peers Financial Analysis

Penumbra (NYSE:PEN) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it contrast to its peers? We will compare Penumbra to related businesses based on the strength of its profitability, institutional ownership, valuation, analyst recommendations, risk, dividends and earnings.

Analyst Ratings

This is a summary of current ratings and price targets for Penumbra and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	14	3	0	2.18
Penumbra Competitors	4273	10549	18323	829	2.46

Penumbra currently has a consensus price target of $367.07, indicating a potential upside of 14.94%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.58%. Given Penumbra’s peers stronger consensus rating and higher probable upside, analysts clearly believe Penumbra has less favorable growth aspects than its peers.

Volatility and Risk

Penumbra has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Penumbra’s peers have a beta of 2.56, indicating that their average stock price is 156% more volatile than the S&P 500.

Profitability

This table compares Penumbra and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	10.06%	10.39%	8.09%
Penumbra Competitors	-278.24%	-150.08%	-21.87%

Valuation & Earnings

This table compares Penumbra and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Penumbra	$1.40 billion	$177.69 million	80.44
Penumbra Competitors	$1.88 billion	$139.14 million	9.47

Penumbra’s peers have higher revenue, but lower earnings than Penumbra. Penumbra is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 2.9% of Penumbra shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Penumbra peers beat Penumbra on 7 of the 13 factors compared.

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.