Nutex Health (NASDAQ:NUTX) and Embecta (NASDAQ:EMBC) Critical Survey

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

Earnings & Valuation

This table compares Embecta and Nutex Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.08 billion	0.66	$95.40 million	$1.63	7.33
Nutex Health	$479.95 million	2.47	$52.10 million	$18.49	9.09

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

Volatility and Risk

Embecta has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Nutex Health has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Embecta and Nutex Health, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	3	1	0	2.25
Nutex Health	0	1	2	0	2.67

Embecta currently has a consensus price target of $18.50, suggesting a potential upside of 54.75%. Nutex Health has a consensus price target of $252.50, suggesting a potential upside of 50.30%. Given Embecta’s higher probable upside, equities analysts plainly believe Embecta is more favorable than Nutex Health.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embecta	8.83%	-24.62%	15.40%
Nutex Health	11.62%	37.44%	14.16%

Insider and Institutional Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 5.3% of Nutex Health shares are owned by institutional investors. 1.3% of Embecta shares are owned by insiders. Comparatively, 36.9% of Nutex Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Nutex Health beats Embecta on 8 of the 14 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 Nutex Health

Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.