Analyzing Penumbra (NYSE:PEN) & Profound Medical (NASDAQ:PROF)

Profound Medical (NASDAQ:PROF) and Penumbra (NYSE:PEN) are both medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

47.9% of Profound Medical shares are held by institutional investors. Comparatively, 88.9% of Penumbra shares are held by institutional investors. 1.5% of Profound Medical shares are held by company insiders. Comparatively, 5.0% of Penumbra shares are held 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.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Profound Medical and Penumbra, as provided by MarketBeat.com.

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

Profound Medical currently has a consensus target price of $13.75, indicating a potential upside of 82.85%. Penumbra has a consensus target price of $209.42, indicating a potential upside of 8.74%. Given Profound Medical’s stronger consensus rating and higher probable upside, equities analysts plainly believe Profound Medical is more favorable than Penumbra.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Profound Medical	$7.88 million	23.36	-$28.57 million	($1.29)	-5.83
Penumbra	$1.13 billion	6.59	$90.95 million	$2.37	81.26

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.

Summary

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

About Profound Medical

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.

About Penumbra

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.