Integra LifeSciences (NASDAQ:IART) versus Embecta (NASDAQ:EMBC) Critical Review

Embecta (NASDAQ:EMBC) and Integra LifeSciences (NASDAQ:IART) are both small-cap healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

93.8% of Embecta shares are held by institutional investors. Comparatively, 84.8% of Integra LifeSciences shares are held by institutional investors. 1.3% of Embecta shares are held by insiders. Comparatively, 3.8% of Integra LifeSciences shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.08 billion	0.34	$95.40 million	$1.48	4.40
Integra LifeSciences	$1.64 billion	0.57	-$516.47 million	$0.17	70.44

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	2	3	0	0	1.60
Integra LifeSciences	2	5	2	0	2.00

Embecta presently has a consensus price target of $11.00, indicating a potential upside of 68.84%. Integra LifeSciences has a consensus price target of $16.12, indicating a potential upside of 34.66%. Given Embecta’s higher possible upside, analysts clearly believe Embecta is more favorable than Integra LifeSciences.

Profitability

This table compares Embecta and Integra LifeSciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embecta	8.59%	-19.25%	10.82%
Integra LifeSciences	0.79%	18.74%	5.46%

Volatility and Risk

Embecta has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Integra LifeSciences has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

Integra LifeSciences 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 Integra LifeSciences

Integra LifeSciences Holdings Corporation manufactures and sells surgical instruments, neurosurgical products, and wound care products for use in neurosurgery, neurocritical care, and otolaryngology. It operates in two segments, Codman Specialty Surgical and Tissue Technologies. The company offers neurosurgery and neuro critical care products, including tissue ablation equipment, dural repair products, cerebral spinal fluid management devices, intracranial monitoring equipment, and cranial stabilization equipment; and surgical headlamps and instrumentation, as well as after-market services. It also sells instrument patterns, and surgical and lighting products to hospitals and surgery centers, as well as dental, podiatry, and veterinary offices. In addition, the company provides regenerative technology products for the treatment of acute wounds; and surgical tissue repair products for hernia, tendon, peripheral nerve repair and protection. Further, it offers skin and wound repair, plastics and surgical reconstruction products, bone grafts, and nerve and tendon repair products. The company offers its products directly through various sales forces and other distribution channels to the hospitals, integrated health networks, group purchasing organizations, clinicians, surgery centers, and health care providers in the United States, Europe, Asia Pacific, and internationally. Integra LifeSciences Holdings Corporation was incorporated in 1989 and is headquartered in Princeton, New Jersey.