Contrasting Embecta (NASDAQ:EMBC) & QHSLab (OTCMKTS:USAQ)

QHSLab (OTCMKTS:USAQ) and Embecta (NASDAQ:EMBC) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Valuation & Earnings

This table compares QHSLab and Embecta”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QHSLab	$1.41 million	1.43	-$470,000.00	($0.01)	-19.00
Embecta	$1.12 billion	1.01	$78.30 million	$1.35	14.58

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

Profitability

This table compares QHSLab and Embecta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QHSLab	-3.24%	N/A	-3.43%
Embecta	6.97%	-18.54%	11.43%

Risk and Volatility

QHSLab has a beta of -0.82, meaning that its stock price is 182% less volatile than the S&P 500. Comparatively, Embecta has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Institutional & Insider Ownership

93.8% of Embecta shares are owned by institutional investors. 74.2% of QHSLab shares are owned by insiders. Comparatively, 0.3% of Embecta shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for QHSLab and Embecta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QHSLab	0	0	0	0	0.00
Embecta	0	1	1	0	2.50

Embecta has a consensus price target of $23.00, indicating a potential upside of 16.87%. Given Embecta’s stronger consensus rating and higher probable upside, analysts plainly believe Embecta is more favorable than QHSLab.

Summary

Embecta beats QHSLab on 11 of the 14 factors compared between the two stocks.

About QHSLab

QHSLab, Inc., a medical device technology and software as a service (SaaS) company, focuses on value-based healthcare, informatics, and algorithmic personalized medicine. It develops digital therapeutics and point of care solutions to support remote patient monitoring, address chronic care, and preventive medicine. The company provides quality health score lab expert system (QHSLab), a cloud-based SaaS system, which provides physicians and healthcare organizations with the ability to capture and store patient information electronically in a secure database; and distributes AllergiEnd, a diagnostic related product and allergen immunotherapy treatments to primary care physicians. Its products are designed to promote prevention, early detection, management, and reversal of chronic diseases. The company was formerly known as USA Equities Corp. and changed its name to QHSLab, Inc. in April 2022. QHSLab, Inc. has a strategic alliance with Medical License Factory, LLC. QHSLab, Inc. was incorporated in 1983 and is based in West Palm Beach, Florida.

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.