Reviewing Embecta (EMBC) & Its Peers

Embecta (NASDAQ:EMBC) is one of 511 public companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare Embecta to related companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Embecta has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Embecta’s rivals have a beta of 2.55, meaning that their average stock price is 155% more volatile than the S&P 500.

Profitability

This table compares Embecta and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embecta	8.59%	-19.25%	10.82%
Embecta Competitors	-278.38%	-150.31%	-21.96%

Institutional and Insider Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 1.3% of Embecta shares are owned by company insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Embecta and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	1	4	0	0	1.80
Embecta Competitors	4262	10489	18226	825	2.46

Embecta presently has a consensus price target of $11.00, indicating a potential upside of 76.14%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 23.27%. Given Embecta’s higher probable upside, equities analysts plainly believe Embecta is more favorable than its rivals.

Earnings & Valuation

This table compares Embecta and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Embecta	$1.02 billion	$95.40 million	4.22
Embecta Competitors	$1.90 billion	$137.77 million	10.84

Embecta’s rivals have higher revenue and earnings than Embecta. Embecta is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Embecta pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Embecta pays out 2.7% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.2% and pay out 53.9% of their earnings in the form of a dividend.

Summary

Embecta rivals beat Embecta on 9 of the 15 factors compared.

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.