Comparing Penumbra (NYSE:PEN) and RxSight (NASDAQ:RXST)

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

Analyst Recommendations

This is a breakdown of current ratings for Penumbra and RxSight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	3	13	2	2.94
RxSight	2	8	1	0	1.91

Penumbra presently has a consensus target price of $300.4667, indicating a potential upside of 13.30%. RxSight has a consensus target price of $10.00, indicating a potential upside of 16.14%. Given RxSight’s higher probable upside, analysts clearly believe RxSight is more favorable than Penumbra.

Risk and Volatility

Penumbra has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, RxSight has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 78.8% of RxSight shares are held by institutional investors. 5.0% of Penumbra shares are held by insiders. Comparatively, 9.6% of RxSight shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.19 billion	8.66	$14.01 million	$3.76	70.53
RxSight	$139.93 million	2.52	-$27.45 million	($0.80)	-10.76

Penumbra has higher revenue and earnings than RxSight. RxSight 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 RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	11.54%	11.55%	8.76%
RxSight	-21.93%	-11.56%	-10.31%

Summary

Penumbra beats RxSight on 12 of the 15 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 RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.