Embecta (EMBC) versus Its Rivals Financial Analysis

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

Analyst Recommendations

This is a summary of current ratings for Embecta and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	1	4	0	0	1.80
Embecta Competitors	4279	10550	18327	829	2.46

Embecta presently has a consensus price target of $11.00, indicating a potential upside of 77.71%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.30%. Given Embecta’s higher probable upside, equities research analysts plainly believe Embecta is more favorable than its peers.

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 46.5% of their earnings in the form of a dividend.

Institutional & Insider Ownership

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

Valuation & Earnings

This table compares Embecta and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Embecta	$1.08 billion	$95.40 million	4.18
Embecta Competitors	$1.88 billion	$138.79 million	10.35

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

Profitability

This table compares Embecta and its peers’ 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	-305.24%	-170.58%	-22.05%

Volatility and Risk

Embecta has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Embecta’s peers have a beta of 2.56, meaning that their average share price is 156% more volatile than the S&P 500.

Summary

Embecta peers 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.