Critical Contrast: Diadexus (OTCMKTS:DDXS) & Penumbra (NYSE:PEN)

Penumbra (NYSE:PEN) and Diadexus (OTCMKTS:DDXS) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penumbra	10.67%	10.50%	8.17%
Diadexus	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Penumbra and Diadexus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	1	13	3	0	2.12
Diadexus	0	0	0	0	0.00

Penumbra presently has a consensus target price of $367.07, indicating a potential upside of 12.61%. Given Penumbra’s stronger consensus rating and higher possible upside, analysts clearly believe Penumbra is more favorable than Diadexus.

Earnings and Valuation

This table compares Penumbra and Diadexus”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	9.15	$177.69 million	$4.07	80.09
Diadexus	N/A	N/A	N/A	N/A	N/A

Penumbra has higher revenue and earnings than Diadexus.

Insider and Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. 2.9% of Penumbra shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Penumbra beats Diadexus on 9 of the 9 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 Diadexus

Diadexus, Inc. engages in the research, development, and commercialization of pharmaceutical products. Its portfolio intends to treat cardiovascular diseases. The company was founded on November 27, 1995 and is headquartered in South San Francisco, CA.