Embecta (NASDAQ:EMBC – Get Free Report) and Sight Sciences (NASDAQ:SGHT – Get Free Report) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Embecta and Sight Sciences, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Embecta | 0 | 2 | 1 | 0 | 2.33 |
| Sight Sciences | 0 | 5 | 2 | 0 | 2.29 |
Embecta currently has a consensus price target of $20.33, suggesting a potential upside of 79.31%. Sight Sciences has a consensus price target of $3.83, suggesting a potential upside of 44.11%. Given Embecta’s stronger consensus rating and higher probable upside, research analysts plainly believe Embecta is more favorable than Sight Sciences.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Embecta | 5.25% | -19.22% | 11.92% |
| Sight Sciences | -63.30% | -47.28% | -32.72% |
Valuation and Earnings
This table compares Embecta and Sight Sciences”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Embecta | $1.11 billion | 0.60 | $78.30 million | $1.00 | 11.34 |
| Sight Sciences | $79.87 million | 1.71 | -$55.55 million | ($1.03) | -2.58 |
Embecta has higher revenue and earnings than Sight Sciences. Sight Sciences is trading at a lower price-to-earnings ratio than Embecta, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Embecta has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Sight Sciences has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.
Insider and Institutional Ownership
93.8% of Embecta shares are held by institutional investors. Comparatively, 55.5% of Sight Sciences shares are held by institutional investors. 0.4% of Embecta shares are held by company insiders. Comparatively, 28.9% of Sight Sciences shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Embecta beats Sight Sciences on 10 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 Sight Sciences
Sight Sciences, Inc., an ophthalmic medical device company, engages in the development and commercialization of surgical and nonsurgical technologies for the treatment of eye diseases. It operates through two segments, Surgical Glaucoma and Dry Eye. The company's products include OMNI Surgical System, an implant-free glaucoma surgery technology indicated to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and SION Surgical Instrument, a manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. It also offers TearCare System, a wearable eyelid technology for adult patients with evaporative dry eye disease due to meibomian gland dysfunction, as well as related components. It offers its products through sales representatives and distributors to hospitals, medical centers, and eyecare professionals in the United States. Sight Sciences, Inc. was incorporated in 2010 and is headquartered in Menlo Park, California.
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