Contrasting InspireMD (NYSE:NSPR) and Embecta (NASDAQ:EMBC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Embecta	6.97%	-18.54%	11.43%
InspireMD	-413.96%	-69.42%	-57.68%

Insider & Institutional Ownership

93.8% of Embecta shares are owned by institutional investors. Comparatively, 44.8% of InspireMD shares are owned by institutional investors. 0.4% of Embecta shares are owned by company insiders. Comparatively, 29.7% of InspireMD shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Embecta and InspireMD”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embecta	$1.12 billion	0.93	$78.30 million	$1.35	13.28
InspireMD	$6.20 million	10.85	-$19.92 million	($0.75)	-3.44

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

Volatility & Risk

Embecta has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, InspireMD has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Embecta and InspireMD, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embecta	0	1	1	0	2.50
InspireMD	0	0	2	0	3.00

Embecta presently has a consensus target price of $23.00, suggesting a potential upside of 28.28%. InspireMD has a consensus target price of $4.75, suggesting a potential upside of 84.11%. Given InspireMD’s stronger consensus rating and higher possible upside, analysts clearly believe InspireMD is more favorable than Embecta.

Summary

Embecta beats InspireMD on 9 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 InspireMD

InspireMD, Inc., a medical device company, focuses on the development and commercialization of MicroNet stent platform technology for the treatment of vascular and coronary diseases in Europe, Latin America, the Middle East, and Asia Pacific. The company offers CGuard carotid embolic prevention system (EPS) for use in carotid artery applications; CGuard Prime Stent System, a mesh-covered self-expanding carotid stent; and SwitchGuard NPS, a non-invasive transcarotid artery revascularization device; as well as treating acute stroke with tandem lesions. InspireMD, Inc. has a strategic agreement with Jacobs Institute to execute an early feasibility study of CGuard Prime for the treatment of acute stroke patients with tandem lesions. The company sells its products through local distribution partners. InspireMD, Inc. was founded in 2005 and is headquartered in Tel Aviv-Yafo, Israel.