Financial Review: Endologix (OTCMKTS:ELGXQ) and Embecta (NASDAQ:EMBC)

Endologix (OTCMKTS:ELGXQ) and Embecta (NASDAQ:EMBC) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Endologix and Embecta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Endologix	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 13.41%. Given Embecta’s stronger consensus rating and higher possible upside, analysts clearly believe Embecta is more favorable than Endologix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Endologix	N/A	N/A	N/A
Embecta	6.97%	-18.54%	11.43%

Institutional & Insider Ownership

93.8% of Embecta shares are held by institutional investors. 1.3% of Endologix shares are held by company insiders. Comparatively, 0.3% of Embecta shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Endologix and Embecta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Endologix	N/A	N/A	N/A	N/A	N/A
Embecta	$1.12 billion	1.05	$78.30 million	$1.35	15.02

Embecta has higher revenue and earnings than Endologix.

Summary

Embecta beats Endologix on 7 of the 9 factors compared between the two stocks.

About Endologix

Endologix, Inc. develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. The company offers minimally-invasive endovascular aneurysm repair (EVAR), including AFX (Anatomical Fixation) endovascular AAA system, which is a minimally invasive delivery system; VELA Proximal Endograft, which is designed for the treatment of proximal aortic neck anatomies with AFX; and the Ovation abdominal stent graft system. It also provides endovascular aneurysm sealing system (EVAS) product that is based on the Nellix EVAS system to seal the aneurysm, and provides blood flow to the legs through two blood lumens. In addition, the company offers proximal aortic extensions and limb extensions, which allow physicians to customize the implant to fit the patient's anatomy; and accessories to facilitate the delivery of its EVAR and EVAS products, including compatible guidewires, inflation devices, and snares. It sells its products through direct sales force, and a network of third party distributors and agents. The company was formerly known as Radiance Medical Systems, Inc. and changed its name to Endologix, Inc. in May 2002. Endologix, Inc. was founded in 1992 and is headquartered in Irvine, California. On July 5, 2020, Endologix, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Texas. It is in joint administration with TriVascular Sales LLC.

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.