Analyzing Penumbra (PEN) and Masimo Corporation (MASI)
Penumbra (NYSE: PEN) and Masimo Corporation (NASDAQ:MASI) are both mid-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitabiliy and dividends.
Volatility & Risk
Penumbra has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Masimo Corporation has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
This table compares Penumbra and Masimo Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Penumbra and Masimo Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Penumbra||$278.61 million||10.19||-$2.82 million||($0.21)||-402.14|
|Masimo Corporation||$709.76 million||6.57||$171.03 million||$5.88||15.49|
Masimo Corporation has higher revenue and earnings than Penumbra. Penumbra is trading at a lower price-to-earnings ratio than Masimo Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Penumbra and Masimo Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Penumbra currently has a consensus target price of $95.00, suggesting a potential upside of 12.49%. Masimo Corporation has a consensus target price of $75.67, suggesting a potential downside of 16.95%. Given Penumbra’s stronger consensus rating and higher probable upside, research analysts clearly believe Penumbra is more favorable than Masimo Corporation.
Insider and Institutional Ownership
68.7% of Penumbra shares are held by institutional investors. Comparatively, 83.5% of Masimo Corporation shares are held by institutional investors. 22.0% of Penumbra shares are held by company insiders. Comparatively, 16.6% of Masimo Corporation shares are held by company 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.
Masimo Corporation beats Penumbra on 8 of the 13 factors compared between the two stocks.
Penumbra, Inc. is a healthcare company focused on interventional therapies. The Company designs, develops, manufactures and markets medical devices. It has a portfolio of products that addresses medical conditions and clinical needs across two markets, neuro and peripheral vascular. The conditions that its products address include ischemic stroke, hemorrhagic stroke and various peripheral vascular conditions that can be treated through thrombectomy and embolization procedures. It focuses on developing, manufacturing and marketing products for use by specialist physicians, including interventional neuroradiologists, neurosurgeons, interventional neurologists, interventional radiologists and vascular surgeons. Its neuro products include Neurovascular Access, Neuro Thrombectomy (Ischemic Stroke), Neurovascular Embolization (Brain Aneurysms) and Neurosurgical Tools (Hemorrhagic Stroke). Its peripheral vascular products include Peripheral Vascular Embolization and Peripheral Thrombectomy.
About Masimo Corporation
Masimo Corporation is a medical technology company that develops, manufactures and markets a range of non-invasive patient monitoring technologies. The Company’s business is Measure-through Motion and Low Perfusion pulse oximetry monitoring, known as Masimo Signal Extraction Technology (SET) pulse oximetry. Its product offerings include non-invasive monitoring of blood constituents with an optical signature, optical organ oximetry monitoring, electrical, brain function monitoring, acoustic respiration monitoring and exhaled gas monitoring. In addition, the Company has developed the Root patient monitoring and connectivity platform, the Radical-7 bedside and portable patient monitor, and the Radius-7 wearable wireless patient monitor. It offers Patient SafetyNet remote patient surveillance monitoring system, which allows patients to be monitored through a personal computer-based monitor or by care providers through their pagers, voice-over-Internet Protocol (IP) phones or smartphones.
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