Critical Review: Presbia (OTCMKTS:LENSF) & Embecta (NASDAQ:EMBC)

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

Valuation and Earnings

This table compares Embecta and Presbia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.11 billion	0.64	$78.30 million	$1.00	12.19
Presbia	N/A	N/A	N/A	N/A	N/A

Embecta has higher revenue and earnings than Presbia.

Insider and Institutional Ownership

93.8% of Embecta shares are held by institutional investors. 0.4% of Embecta shares are held by company insiders. Comparatively, 74.2% of Presbia shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embecta	5.25%	-19.22%	11.92%
Presbia	N/A	N/A	N/A

Volatility & Risk

Embecta has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Presbia has a beta of 5.91, indicating that its stock price is 491% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Embecta and Presbia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	2	1	0	2.33
Presbia	0	0	0	0	0.00

Embecta presently has a consensus price target of $20.33, suggesting a potential upside of 66.80%. Given Embecta’s stronger consensus rating and higher possible upside, research analysts plainly believe Embecta is more favorable than Presbia.

Summary

Embecta beats Presbia on 7 of the 10 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 Presbia

Presbia PLC, an ophthalmic device company, develops and markets optical lens implants for treating presbyopia. The company provides the refractive lens for patient surgeries, as well as accessories for procedures. It primarily operates in the United States, South Korea, Australia, Italy, the Netherlands, Ireland, Canada, and Germany. The company was founded in 2014 and is headquartered in Dublin, Ireland.