Critical Comparison: Integra LifeSciences (NASDAQ:IART) vs. Embecta (NASDAQ:EMBC)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Integra LifeSciences	$1.64 billion	0.61	-$516.47 million	$0.17	75.00
Embecta	$1.08 billion	0.33	$95.40 million	$1.48	4.22

Embecta has lower revenue, but higher earnings 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 Ratings

This is a breakdown of current ratings and recommmendations for Integra LifeSciences and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Integra LifeSciences	3	5	2	0	1.90
Embecta	2	3	0	0	1.60

Integra LifeSciences presently has a consensus price target of $16.12, suggesting a potential upside of 26.47%. Embecta has a consensus price target of $11.00, suggesting a potential upside of 76.00%. Given Embecta’s higher probable upside, analysts plainly believe Embecta is more favorable than Integra LifeSciences.

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Integra LifeSciences	0.79%	18.63%	5.49%
Embecta	8.59%	-19.25%	10.82%

Insider and Institutional Ownership

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

Summary

Integra LifeSciences beats Embecta on 8 of the 14 factors compared between the two stocks.

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.

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.