Analyzing Penumbra (NYSE:PEN) and Ambu A/S (OTCMKTS:AMBBY)

Penumbra (NYSE:PEN) and Ambu A/S (OTCMKTS:AMBBY) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Penumbra and Ambu A/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	14	3	0	2.18
Ambu A/S	0	1	0	0	2.00

Penumbra currently has a consensus price target of $367.07, suggesting a potential upside of 12.93%. Given Penumbra’s stronger consensus rating and higher probable upside, analysts plainly believe Penumbra is more favorable than Ambu A/S.

Institutional and Insider Ownership

88.9% of Penumbra shares are held by institutional investors. 2.9% of Penumbra shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Penumbra and Ambu A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	10.67%	10.50%	8.17%
Ambu A/S	8.18%	8.49%	6.75%

Volatility and Risk

Penumbra has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Ambu A/S has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Penumbra and Ambu A/S”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.40 billion	9.12	$177.69 million	$4.07	79.86
Ambu A/S	$894.37 million	3.06	$90.19 million	$0.30	38.80

Penumbra has higher revenue and earnings than Ambu A/S. Ambu A/S is trading at a lower price-to-earnings ratio than Penumbra, indicating that it is currently the more affordable of the two stocks.

Summary

Penumbra beats Ambu A/S on 13 of the 14 factors compared between the two stocks.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

About Ambu A/S

Ambu A/S develops, produces, and sells medical devices to hospitals, clinics, and rescue services worldwide. The company offers anaesthesia, and patient monitoring and diagnostics products. The company also offers endoscopy products, such as bronchoscopes, rhinolaryngoscopes, duodenoscopes, cystoscopes, and display units; and neurology products, including EEG and EMG electrodes, EMG guided injections, and intraoperative monitoring products. It also provides cardiology products consisting of airway management and anaesthesia products, such as bronchoscopes, video laryngoscopes, double and single lumen tubes, endobronchial blockers, laryngeal and face masks, breathing bags, and resuscitators. In addition, the company offers extrication collars, CPR breathing barriers, video laryngoscopes, and training manikins. The company was founded in 1937 and is headquartered in Ballerup, Denmark.