Reviewing Co-Diagnostics (NASDAQ:CODX) and Embecta (NASDAQ:EMBC)

Co-Diagnostics (NASDAQ:CODXGet Free Report) and Embecta (NASDAQ:EMBCGet Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

15.0% of Co-Diagnostics shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 5.4% of Co-Diagnostics shares are owned by company insiders. Comparatively, 1.3% of Embecta shares are owned by company 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 ratings and recommmendations for Co-Diagnostics and Embecta, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Co-Diagnostics 1 2 1 0 2.00
Embecta 3 2 0 0 1.40

Co-Diagnostics presently has a consensus target price of $67.50, indicating a potential upside of 691.32%. Embecta has a consensus target price of $11.00, indicating a potential upside of 226.89%. Given Co-Diagnostics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Co-Diagnostics is more favorable than Embecta.

Earnings & Valuation

This table compares Co-Diagnostics and Embecta”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Co-Diagnostics $718,166.00 42.78 -$46.90 million ($15.77) -0.54
Embecta $1.08 billion 0.18 $95.40 million $1.90 1.77

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

Risk & Volatility

Co-Diagnostics has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Embecta has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Co-Diagnostics and Embecta’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Co-Diagnostics -6,760.63% -164.92% -141.15%
Embecta 10.73% -23.96% 14.12%

Summary

Embecta beats Co-Diagnostics on 8 of the 14 factors compared between the two stocks.

About Co-Diagnostics

(Get Free Report)

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.

About Embecta

(Get Free Report)

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.

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