Embecta (NASDAQ:EMBC – Get Free Report) and Co-Diagnostics (NASDAQ:CODX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
Profitability
This table compares Embecta and Co-Diagnostics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Embecta | 10.73% | -23.96% | 14.12% |
| Co-Diagnostics | -6,760.63% | -164.92% | -141.15% |
Institutional and Insider Ownership
93.8% of Embecta shares are held by institutional investors. Comparatively, 15.0% of Co-Diagnostics shares are held by institutional investors. 1.3% of Embecta shares are held by insiders. Comparatively, 5.4% of Co-Diagnostics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Embecta | $1.08 billion | 0.18 | $95.40 million | $1.90 | 1.73 |
| Co-Diagnostics | $620,000.00 | 42.39 | -$46.90 million | ($15.77) | -0.46 |
Embecta has higher revenue and earnings than Co-Diagnostics. Co-Diagnostics is trading at a lower price-to-earnings ratio than Embecta, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Embecta has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Co-Diagnostics has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Embecta and Co-Diagnostics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 3 | 2 | 0 | 0 | 1.40 |
| Co-Diagnostics | 1 | 2 | 1 | 0 | 2.00 |
Embecta presently has a consensus target price of $11.00, suggesting a potential upside of 234.35%. Co-Diagnostics has a consensus target price of $67.50, suggesting a potential upside of 824.66%. Given Co-Diagnostics’ stronger consensus rating and higher probable upside, analysts plainly believe Co-Diagnostics is more favorable than Embecta.
Summary
Embecta beats Co-Diagnostics on 8 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 Co-Diagnostics
Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.
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