Contrasting LENSAR (NASDAQ:LNSR) & Penumbra (NYSE:PEN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LENSAR	57.57%	-529.08%	50.03%
Penumbra	10.67%	10.50%	8.17%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LENSAR and Penumbra, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LENSAR	1	0	2	0	2.33
Penumbra	0	14	3	0	2.18

LENSAR presently has a consensus target price of $11.33, indicating a potential upside of 67.90%. Penumbra has a consensus target price of $367.07, indicating a potential upside of 15.53%. Given LENSAR’s stronger consensus rating and higher possible upside, equities analysts plainly believe LENSAR is more favorable than Penumbra.

Risk and Volatility

LENSAR has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

40.2% of LENSAR shares are owned by institutional investors. Comparatively, 88.9% of Penumbra shares are owned by institutional investors. 65.8% of LENSAR shares are owned by company insiders. Comparatively, 2.9% of Penumbra shares are owned by company 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 LENSAR and Penumbra”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LENSAR	$60.26 million	1.38	-$34.28 million	($0.33)	-20.45
Penumbra	$1.40 billion	8.92	$177.69 million	$4.07	78.07

Penumbra has higher revenue and earnings than LENSAR. LENSAR 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 LENSAR on 8 of the 14 factors compared between the two stocks.

About LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.

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.