Head to Head Survey: InnovAge (NASDAQ:INNV) vs. Embecta (NASDAQ:EMBC)

Embecta (NASDAQ:EMBC) and InnovAge (NASDAQ:INNV) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares Embecta and InnovAge”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.08 billion	0.58	$95.40 million	$2.37	4.44
InnovAge	$853.70 million	1.28	-$30.31 million	$0.05	161.60

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

Insider and Institutional Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 12.3% of InnovAge shares are owned by institutional investors. 1.3% of Embecta shares are owned by company insiders. Comparatively, 1.0% of InnovAge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Embecta has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Embecta and InnovAge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	3	1	0	2.25
InnovAge	1	1	0	1	2.33

Embecta currently has a consensus price target of $18.50, indicating a potential upside of 75.69%. InnovAge has a consensus price target of $5.00, indicating a potential downside of 38.12%. Given Embecta’s higher possible upside, analysts plainly believe Embecta is more favorable than InnovAge.

Profitability

This table compares Embecta and InnovAge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embecta	12.92%	-26.66%	16.06%
InnovAge	0.71%	2.60%	1.23%

Summary

Embecta beats InnovAge on 10 of the 15 factors compared between the two stocks.

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.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in its homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.