Comparing Embecta (NASDAQ:EMBC) & Pacific Health Care Organization (OTCMKTS:PFHO)

Pacific Health Care Organization (OTCMKTS:PFHO) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Earnings & Valuation

This table compares Pacific Health Care Organization and Embecta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Health Care Organization	$6.07 million	2.53	$880,000.00	$0.11	10.91
Embecta	$1.08 billion	0.49	$95.40 million	$2.37	3.76

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

Volatility and Risk

Pacific Health Care Organization has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pacific Health Care Organization and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Health Care Organization	0	0	0	0	0.00
Embecta	0	3	1	0	2.25

Embecta has a consensus price target of $18.50, suggesting a potential upside of 107.63%. Given Embecta’s stronger consensus rating and higher possible upside, analysts clearly believe Embecta is more favorable than Pacific Health Care Organization.

Institutional & Insider Ownership

93.8% of Embecta shares are held by institutional investors. 61.6% of Pacific Health Care Organization shares are held by insiders. Comparatively, 1.3% of Embecta shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Pacific Health Care Organization and Embecta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Health Care Organization	21.71%	11.80%	11.21%
Embecta	12.92%	-26.66%	16.06%

Summary

Embecta beats Pacific Health Care Organization on 9 of the 14 factors compared between the two stocks.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.

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.