Comparing Penumbra (NYSE:PEN) and Interpace Diagnostics Group (NYSE:IDXG)

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

Insider and Institutional Ownership

86.6% of Penumbra shares are held by institutional investors. Comparatively, 22.8% of Interpace Diagnostics Group shares are held by institutional investors. 9.6% of Penumbra shares are held by company insiders. Comparatively, 2.8% of Interpace Diagnostics Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Penumbra and Interpace Diagnostics Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penumbra $444.94 million 13.03 $6.60 million $0.51 327.12
Interpace Diagnostics Group $21.90 million 1.22 -$12.19 million ($0.43) -1.63

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

Analyst Recommendations

This is a breakdown of recent ratings for Penumbra and Interpace Diagnostics Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penumbra 0 1 6 0 2.86
Interpace Diagnostics Group 0 0 4 0 3.00

Penumbra currently has a consensus target price of $167.20, suggesting a potential upside of 0.22%. Interpace Diagnostics Group has a consensus target price of $3.56, suggesting a potential upside of 408.93%. Given Interpace Diagnostics Group’s stronger consensus rating and higher probable upside, analysts clearly believe Interpace Diagnostics Group is more favorable than Penumbra.

Profitability

This table compares Penumbra and Interpace Diagnostics Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penumbra 2.51% 5.84% 4.75%
Interpace Diagnostics Group -53.75% -34.69% -24.37%

Risk & Volatility

Penumbra has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Interpace Diagnostics Group has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Summary

Penumbra beats Interpace Diagnostics Group on 11 of the 14 factors compared between the two stocks.

Penumbra Company Profile

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The company offers neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, DDC, and PX SLIM brands; aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the ACE and the 3D Revascularization Device brands. It also offers neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400 and Penumbra SMART Coil brands. In addition, the company provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; and detachable embolic coil systems for peripheral embolization under the RUBY Coil brand, as well as microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand. Further, it offers detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand; and aspiration-based thrombectomy systems for peripheral applications under the Indigo System brand, as well as a complementary device for use with RUBY Coil and POD for vessel occlusion under the POD Packing Coil brand. The company sells its products through direct sales organizations and distributors to hospitals in neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.

Interpace Diagnostics Group Company Profile

Interpace Diagnostics Group, Inc. develops and commercializes molecular diagnostic tests to detect genetic and other molecular alterations associated with gastrointestinal and endocrine cancers. It offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion molecular test that helps physicians better assess risk of pancreaticobiliary cancers using its proprietary PathFinder platform; ThyGenX, an oncogenic mutation panel that helps identify malignant thyroid nodules; and ThyraMIR, an microRNA gene expression assay that helps to classify risk of cancer in thyroid nodules. The company's customers consist primarily of physicians, hospitals, and clinics. The company was formerly known as PDI, Inc. and changed its name to Interpace Diagnostics Group, Inc. in December 2015. Interpace Diagnostics Group, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

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