Rockwell Medical (NASDAQ:RMTI – Get Free Report) and Embecta (NASDAQ:EMBC – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional and Insider Ownership
23.3% of Rockwell Medical shares are owned by institutional investors. Comparatively, 93.8% of Embecta shares are owned by institutional investors. 4.6% of Rockwell Medical shares are owned by company insiders. Comparatively, 1.3% of Embecta shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Rockwell Medical has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Embecta has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rockwell Medical | $69.26 million | 0.48 | -$5.31 million | ($1.34) | -6.14 |
| Embecta | $1.08 billion | 0.31 | $95.40 million | $1.48 | 3.97 |
Embecta has higher revenue and earnings than Rockwell Medical. Rockwell Medical 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 Rockwell Medical and Embecta’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rockwell Medical | -7.33% | -14.03% | -8.90% |
| Embecta | 8.59% | -19.25% | 10.82% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Rockwell Medical and Embecta, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rockwell Medical | 1 | 0 | 1 | 0 | 2.00 |
| Embecta | 2 | 3 | 0 | 0 | 1.60 |
Rockwell Medical currently has a consensus target price of $20.00, indicating a potential upside of 143.01%. Embecta has a consensus target price of $11.00, indicating a potential upside of 87.07%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rockwell Medical is more favorable than Embecta.
About Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
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.
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