Critical Survey: Intuitive Surgical (NASDAQ:ISRG) vs. Penumbra (NYSE:PEN)

Intuitive Surgical (NASDAQ:ISRG) and Penumbra (NYSE:PEN) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Earnings and Valuation

This table compares Intuitive Surgical and Penumbra”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intuitive Surgical	$8.35 billion	19.01	$2.32 billion	$7.17	61.79
Penumbra	$1.19 billion	8.28	$14.01 million	$3.76	67.45

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

Volatility and Risk

Intuitive Surgical has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Penumbra has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Intuitive Surgical and Penumbra, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intuitive Surgical	1	6	14	0	2.62
Penumbra	0	3	13	1	2.88

Intuitive Surgical currently has a consensus price target of $594.19, indicating a potential upside of 34.13%. Penumbra has a consensus price target of $302.93, indicating a potential upside of 19.44%. Given Intuitive Surgical’s higher possible upside, equities analysts plainly believe Intuitive Surgical is more favorable than Penumbra.

Institutional and Insider Ownership

83.6% of Intuitive Surgical shares are held by institutional investors. Comparatively, 88.9% of Penumbra shares are held by institutional investors. 0.7% of Intuitive Surgical shares are held by insiders. Comparatively, 4.2% of Penumbra shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Intuitive Surgical and Penumbra’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intuitive Surgical	28.51%	14.56%	12.93%
Penumbra	11.54%	11.55%	8.76%

Summary

Intuitive Surgical beats Penumbra on 10 of the 15 factors compared between the two stocks.

About Intuitive Surgical

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.

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.