Embecta (NASDAQ:EMBC – Get Rating) is one of 219 public companies in the “Surgical & medical instruments” industry, but how does it compare to its peers? We will compare Embecta to related businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.
Valuation and Earnings
This table compares Embecta and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Embecta | $1.13 billion | $223.60 million | 16.18 |
| Embecta Competitors | $902.70 million | $48.11 million | -4.73 |
Embecta has higher revenue and earnings than its peers. Embecta is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 2 | 1 | 0 | 0 | 1.33 |
| Embecta Competitors | 1096 | 3490 | 7465 | 172 | 2.55 |
Embecta currently has a consensus price target of $26.50, suggesting a potential upside of 1.11%. As a group, “Surgical & medical instruments” companies have a potential upside of 20.76%. Given Embecta’s peers stronger consensus rating and higher probable upside, analysts clearly believe Embecta has less favorable growth aspects than its peers.
Institutional and Insider Ownership
93.5% of Embecta shares are held by institutional investors. Comparatively, 46.5% of shares of all “Surgical & medical instruments” companies are held by institutional investors. 0.2% of Embecta shares are held by company insiders. Comparatively, 14.1% of shares of all “Surgical & medical instruments” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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 | 8.44% | -23.46% | 17.55% |
| Embecta Competitors | -516.86% | -129.21% | -27.96% |
Dividends
Embecta pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Embecta pays out 37.0% of its earnings in the form of a dividend. As a group, “Surgical & medical instruments” companies pay a dividend yield of 1.3% and pay out 49.1% of their earnings in the form of a dividend. Embecta is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Volatility and Risk
Embecta has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Embecta’s peers have a beta of 1.37, meaning that their average stock price is 37% more volatile than the S&P 500.
Summary
Embecta beats its peers on 9 of the 15 factors compared.
Embecta Company Profile
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 devices, as well as digital applications to assist people with managing their 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 based in Parsippany, New Jersey. Embecta Corp.(NasdaqGS:EMBC) operates independently of Becton, Dickinson and Company as of April 1, 2022.
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