Reviewing Penumbra (NYSE:PEN) and Profound Medical (NASDAQ:PROF)

Penumbra (NYSE:PENGet Free Report) and Profound Medical (NASDAQ:PROFGet Free Report) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Profitability

This table compares Penumbra and Profound Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penumbra 1.26% 8.39% 6.36%
Profound Medical -350.14% -71.28% -54.70%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Penumbra and Profound Medical, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penumbra 0 5 8 1 2.71
Profound Medical 0 0 3 0 3.00

Penumbra presently has a consensus target price of $208.00, indicating a potential upside of 6.81%. Profound Medical has a consensus target price of $13.75, indicating a potential upside of 75.83%. Given Profound Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Profound Medical is more favorable than Penumbra.

Earnings and Valuation

This table compares Penumbra and Profound Medical”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penumbra $1.13 billion 6.66 $90.95 million $2.37 82.16
Profound Medical $7.88 million 24.29 -$28.57 million ($1.29) -6.06

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

Risk and Volatility

Penumbra has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Profound Medical has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Insider and Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 47.9% of Profound Medical shares are held by institutional investors. 5.0% of Penumbra shares are held by company insiders. Comparatively, 1.5% of Profound Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Penumbra beats Profound Medical on 11 of the 15 factors compared between the two stocks.

About Penumbra

(Get Free Report)

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

About Profound Medical

(Get Free Report)

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops and markets incision-free therapeutic systems for the image guided ablation of diseased tissue in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system combines magnetic resonance imaging(MRI), robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to provide precise, flexible, and durable ablation of a surgeon defined region of prostate and protect the urethra and rectum. The company also offers Sonalleve, which combines real-time MRI and thermometry for the treatment of uterine fibroids, adenomyotic tissue, palliative pain treatment of bone metastases, osteoid osteoma, and management of benign tumors. Profound Medical Corp. is headquartered in Mississauga, Canada.

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