Analyzing Penumbra (NYSE:PEN) and 908 Devices (NASDAQ:MASS)

Penumbra (NYSE:PEN) and 908 Devices (NASDAQ:MASS) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Penumbra and 908 Devices, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	14	3	0	2.18
908 Devices	1	0	1	0	2.00

Penumbra currently has a consensus price target of $361.33, indicating a potential upside of 12.65%. 908 Devices has a consensus price target of $12.00, indicating a potential upside of 36.05%. Given 908 Devices’ higher probable upside, analysts plainly believe 908 Devices is more favorable than Penumbra.

Insider & Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 88.1% of 908 Devices shares are held by institutional investors. 2.9% of Penumbra shares are held by insiders. Comparatively, 28.2% of 908 Devices shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Penumbra has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, 908 Devices has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Valuation and Earnings

This table compares Penumbra and 908 Devices”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.40 billion	8.99	$177.69 million	$4.34	73.91
908 Devices	$56.20 million	5.93	$19.49 million	($1.00)	-8.82

Penumbra has higher revenue and earnings than 908 Devices. 908 Devices is trading at a lower price-to-earnings ratio than Penumbra, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Penumbra and 908 Devices’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	11.76%	10.87%	8.45%
908 Devices	-62.40%	-14.03%	-10.40%

Summary

Penumbra beats 908 Devices on 12 of the 14 factors compared between the two stocks.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

About 908 Devices

908 Devices Inc., a commercial-stage technology company, provides various purpose-built handheld and desktop mass spectrometry devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, pharma/biopharma, forensics, and adjacent markets. The company's products include MX908, a handheld, battery-powered, and Mass Spec device that is designed for rapid analysis of solid, liquid, vapor, and aerosol materials of unknown identity; Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses; and Maverick, an optical in-line analyzer that offers real-time monitoring and control of multiple bioprocess parameters, including glucose, lactate, and total biomass in mammalian cell cultures, as well as provides process fingerprint data to support large-scale efforts in predictive bioprocess modeling. Its products also comprise Maven and Trace C2, an online device for bioprocess monitoring and control; and ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis. The company operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, and rest of the Americas. 908 Devices Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.