Contrasting Embecta (NASDAQ:EMBC) & Rockwell Medical (NASDAQ:RMTI)

Embecta (NASDAQ:EMBC) and Rockwell Medical (NASDAQ:RMTI) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Embecta and Rockwell Medical, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	2	3	0	0	1.60
Rockwell Medical	1	0	1	0	2.00

Embecta currently has a consensus price target of $11.00, indicating a potential upside of 86.13%. Rockwell Medical has a consensus price target of $20.00, indicating a potential upside of 143.31%. Given Rockwell Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Rockwell Medical is more favorable than Embecta.

Volatility & Risk

Embecta has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Earnings & Valuation

This table compares Embecta and Rockwell Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.08 billion	0.31	$95.40 million	$1.48	3.99
Rockwell Medical	$69.26 million	0.48	-$5.31 million	($1.34)	-6.13

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

Insider and Institutional Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are owned by institutional investors. 1.3% of Embecta shares are owned by insiders. Comparatively, 4.6% of Rockwell Medical shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Embecta and Rockwell Medical’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%
Rockwell Medical	-7.33%	-14.03%	-8.90%

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 Rockwell Medical

Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.