Embecta (NASDAQ:EMBC – Get Free Report) and Nutex Health (NASDAQ:NUTX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and price targets for Embecta and Nutex Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 0 | 3 | 1 | 0 | 2.25 |
| Nutex Health | 0 | 1 | 2 | 0 | 2.67 |
Embecta currently has a consensus target price of $18.50, suggesting a potential upside of 58.66%. Nutex Health has a consensus target price of $252.50, suggesting a potential upside of 70.39%. Given Nutex Health’s stronger consensus rating and higher probable upside, analysts clearly believe Nutex Health is more favorable than Embecta.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Embecta | $1.08 billion | 0.64 | $95.40 million | $1.63 | 7.15 |
| Nutex Health | $479.95 million | 2.18 | $52.10 million | $18.49 | 8.01 |
Embecta has higher revenue and earnings than Nutex Health. Embecta is trading at a lower price-to-earnings ratio than Nutex Health, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
93.8% of Embecta shares are held by institutional investors. Comparatively, 5.3% of Nutex Health shares are held by institutional investors. 1.3% of Embecta shares are held by company insiders. Comparatively, 36.9% of Nutex Health shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Embecta and Nutex Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Embecta | 8.83% | -24.62% | 15.40% |
| Nutex Health | 11.62% | 37.44% | 14.16% |
Volatility and Risk
Embecta has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Nutex Health has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500.
Summary
Nutex Health beats Embecta on 9 of the 14 factors compared between the two stocks.
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.
About Nutex Health
Nutex Health Inc. operates as a physician-led, healthcare services, and operations company. It operates through three segments: Hospital, Population Health Management (PHM), and Real Estate. The PHM segment establishes and operates independent physician associations; and offers a cloud-based platform for healthcare organizations to provide value-based care and population health management. The Real Estate segment owns and owns and leases land and hospital building. The Hospital segment develops and operates a network of micro-hospitals, specialty hospitals and hospital outpatient departments which offers 24/7 care. It also provides operational and managerial services, including management, billing, collections, human resources and recruiting, legal, accounting, and marketing. In addition, the company offers healthcare services, including emergency room care, inpatient care, and behavioral health, as well as onsite imaging, such as CT scan, X-ray, MRI, ultrasound, etc.; certified and accredited laboratories; and onsite inpatient pharmacies. The company was founded in 2011 and is based in Houston, Texas.
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