Penumbra (NASDAQ: TTOO) and T2 Biosystems (NASDAQ:TTOO) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional & Insider Ownership
73.8% of Penumbra shares are owned by institutional investors. Comparatively, 59.1% of T2 Biosystems shares are owned by institutional investors. 10.7% of Penumbra shares are owned by company insiders. Comparatively, 31.5% of T2 Biosystems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Penumbra and T2 Biosystems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Penumbra currently has a consensus target price of $162.50, suggesting a potential upside of 3.64%. T2 Biosystems has a consensus target price of $8.40, suggesting a potential upside of 32.91%. Given T2 Biosystems’ stronger consensus rating and higher probable upside, analysts clearly believe T2 Biosystems is more favorable than Penumbra.
This table compares Penumbra and T2 Biosystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Penumbra has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, T2 Biosystems has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.
Earnings and Valuation
This table compares Penumbra and T2 Biosystems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Penumbra||$333.76 million||16.15||$4.65 million||($0.01)||-15,680.00|
|T2 Biosystems||$4.66 million||59.36||-$62.42 million||N/A||N/A|
Penumbra has higher revenue and earnings than T2 Biosystems.
Penumbra beats T2 Biosystems on 6 of the 11 factors compared between the two stocks.
Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The company offers neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, DDC, and PX SLIM brands; aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the ACE and the 3D Revascularization Device brands. It also offers neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400 and Penumbra SMART Coil brands. In addition, the company provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; and detachable embolic coil systems for peripheral embolization under the RUBY Coil brand, as well as microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand. Further, it offers detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand; and aspiration-based thrombectomy systems for peripheral applications under the Indigo System brand, as well as a complementary device for use with RUBY Coil and POD for vessel occlusion under the POD Packing Coil brand. The company sells its products through direct sales organizations and distributors to hospitals in neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.
About T2 Biosystems
T2 Biosystems, Inc., an in vitro diagnostics company, develops diagnostic products and product candidates in the United States. It provides T2 Magnetic Resonance platform that enables detection of pathogens, biomarkers, and other abnormalities in various unpurified patient sample types, including whole blood, plasma, serum, saliva, sputum, and urine. The company also offers T2Dx, a bench-top instrument for sepsis, Lyme disease, and other applications, as well as T2Candida panel for the detection of candida species in human whole blood specimens. In addition, it is developing T2Bacteria, a multiplex diagnostic panel that detects various bacterial pathogens associated with sepsis; T2Lyme for the detection of various strains of Lyme disease-causing bacteria; and T2Plex, an integrated instrument for hemostasis applications. The company has collaboration agreement with Canon U.S. Life Sciences, Inc. to develop a novel diagnostic test panel to detect Lyme disease; and Allergan Sales, LLC for the direct detection diagnostic test panel that adds additional bacteria species to the existing T2Bacteria product candidate and testing drug resistance directly in whole blood. T2 Biosystems, Inc. was founded in 2006 and is headquartered in Lexington, Massachusetts.
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