Reviewing Pacific Health Care Organization (OTCMKTS:PFHO) & Embecta (NASDAQ:EMBC)

Pacific Health Care Organization (OTCMKTS:PFHO) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Pacific Health Care Organization and Embecta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Health Care Organization	0	0	0	0	0.00
Embecta	0	3	1	0	2.25

Embecta has a consensus target price of $18.50, suggesting a potential upside of 109.99%. Given Embecta’s stronger consensus rating and higher possible upside, analysts plainly believe Embecta is more favorable than Pacific Health Care Organization.

Insider and Institutional Ownership

93.8% of Embecta shares are owned by institutional investors. 61.6% of Pacific Health Care Organization shares are owned by company insiders. Comparatively, 1.3% of Embecta shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Pacific Health Care Organization has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Pacific Health Care Organization and Embecta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Health Care Organization	21.71%	11.80%	11.21%
Embecta	12.92%	-26.66%	16.06%

Valuation and Earnings

This table compares Pacific Health Care Organization and Embecta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Health Care Organization	$6.07 million	2.53	$880,000.00	$0.11	10.91
Embecta	$1.08 billion	0.48	$95.40 million	$2.37	3.72

Embecta has higher revenue and earnings than Pacific Health Care Organization. Embecta is trading at a lower price-to-earnings ratio than Pacific Health Care Organization, indicating that it is currently the more affordable of the two stocks.

Summary

Embecta beats Pacific Health Care Organization on 9 of the 14 factors compared between the two stocks.

About Pacific Health Care Organization

Pacific Health Care Organization, Inc., together with its subsidiaries, operates as a specialty workers' compensation cost containment company in the United States. It is involved in managing and administering health care organizations (HCOs) and medical provider networks (MPNs). The company also provides claims-related services, including utilization review, medical case management, medical bill review, employee advocate services, workers' compensation carve-outs, expert witness testimony, and Medicare set-aside services. It serves insurers, third party administrators, self-administered employers, municipalities, and other industries. The company was formerly known as Clear Air, Inc. and changed its name to Pacific Health Care Organization, Inc. in January 2001. Pacific Health Care Organization, Inc. was incorporated in 1970 and is based in Irvine, California.

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.